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:
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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