Fletes Corporation manufactures two products: Product O95C and Product M31N. 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 O95C and M31N. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C?

Question

Fletes Corporation manufactures two products: Product O95C and Product M31N. 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 O95C and M31N.   Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C?

Quizplus · Accepted Answer

11eacbfc_c666_e2ad_8ffe_ab582ed30d6a_TB7552_00 The overhead cost charged to Product O95C under the ABC system is:
 11eacbfc_c666_e2ae_8ffe_e11def4eab4c_TB7552_00

Fletes Corporation Manufactures Two Products: Product O95C and Product M31N