Hails Corporation manufactures two products: Product Q21F and Product H44W. 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 Q21F and H44W. Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to:

Question

Hails Corporation manufactures two products: Product Q21F and Product H44W. 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 Q21F and H44W.   Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to:

Quizplus · Accepted Answer

11eacbfc_c672_7bdb_8ffe_1b9ecaf4412b_TB7552_00 The overhead cost charged to Product Q21 Funder the ABC system is:
 11eacbfc_c672_7bdc_8ffe_fb0326e9e553_TB7552_00 Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is computed as follows:
 11eacbfc_c672_7bdd_8ffe_892879f7c8b7_TB7552_00

Hails Corporation Manufactures Two Products: Product Q21F and Product H44W