Business, 16.12.2020 01:10 srshelton

Ben Corporation manufactures two products: Product E05G and Product L64Y. The company uses a plantwide overhead rate based on direct labor-hours. It 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 E05G and L64Y.
Activity Cost Pool
Machining
Machine setups
Product design
General factory
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Total Cost Total Activity
$ 285,000 15,000 MHs
$ 180,000 300 setups
$ 64,000 2 products
$ 350,000 10,000 DLHs
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Product E05G
12,000
170
1
3,000
Product L64Y
3,000
130
1
7,000
Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to
Product E05G is closest to

Answers: 2

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Ben Corporation manufactures two products: Product E05G and Product L64Y. The company uses a plantw...

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