Younan Corporation manufactures two products: Product E47F and Product DO2M. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products E47F and D02M. Activity Cost Pool Machining Machine setups Activity Measure Total Cost Total Activity $ 165,000 $ 150,000 $ 70,000 Machine-hours 11,000 MHS Number of setups 250 setups 2 products Product design Number of products Order size Direct labor-hours $ 310, 000 10,е0ө DLHS Product Product Activity Measure Machine-hours E47F DO2M 5,000 6,000 Number of setups 200 50 Number of products 1 1 Direct labor-hours 4,000 6,000 Using the activity-based costing system, the percentage of the total overhead cost that is assigned to Product D02M is closest to:

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 24E: Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs....
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Multiple Choice
49.06%
22.30%
26.76%
50.00%
Transcribed Image Text:Multiple Choice 49.06% 22.30% 26.76% 50.00%
Younan Corporation manufactures two products: Product E47F and Product D02M. The company is considering implementing an activity-based costing (ABC) system that
allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products E47F and D02M.
Activity Cost Pool
Machining
Activity Measure
Total Cost
Total Activity
$ 165,000
$ 150,000
$ 70,000
$ 310,000
11,000 MHs
250 setups
Machine-hours
Machine setups
Number of setups
Product design
Number of products
2 products
Order size
Direct labor-hours
10,000 DLHS
Product
Product
Activity Measure
E47F
DO2M
Machine-hours
5,000
6,000
Number of setups
200
50
Number of products
1
1
Direct labor-hours
4,000
6,000
Using the activity-based costing system, the percentage of the total overhead cost that is assigned to Product D02M is closest to:
Transcribed Image Text:Younan Corporation manufactures two products: Product E47F and Product D02M. The company is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products E47F and D02M. Activity Cost Pool Machining Activity Measure Total Cost Total Activity $ 165,000 $ 150,000 $ 70,000 $ 310,000 11,000 MHs 250 setups Machine-hours Machine setups Number of setups Product design Number of products 2 products Order size Direct labor-hours 10,000 DLHS Product Product Activity Measure E47F DO2M Machine-hours 5,000 6,000 Number of setups 200 50 Number of products 1 1 Direct labor-hours 4,000 6,000 Using the activity-based costing system, the percentage of the total overhead cost that is assigned to Product D02M is closest to:
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