Business, 03.03.2020 05:56 biba54

Bippus Corporation manufactures two products:
Product X08R and Product P56L.
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 X08R and P56L.

Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $247,000 13,000 MHs
Machine setups Number of setups $60,000 150 setups
Product design Number of products $56,000 2 products
Order size Direct labor-hours $260,000 10,000 DLHs

Activity Measure Product X08R Product P56L
Machine-hours 10,000 3,000
Number of setups 110 40
Number of products 1 1
Direct labor-hours 6,000 4,000

Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product P56L?

Answers: 2

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Bippus Corporation manufactures two products:
Product X08R and Product P56L.
The compan...

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