Business, 02.06.2020 23:59 khill21208

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.

Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $207,000 9,000 MHs
Machine setups Number of setups $140,000 350 setups
Product design Number of products $98,000 2 products
Order size Direct labor-hours $340,000 10,000 DLHs

Activity Measure Product O95C Product M31N
Machine-hours 6,000 3,000
Number of setups 190 160
Number of products 1 1
Direct labor-hours 4,000 6,000

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C?

a) $399,000 b) $392,500 c) $263,000 d) $136,000

Answers: 1

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Fletes Corporation manufactures two products: Product O95C and Product M31N. The company uses a plan...

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