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Aresco Corporation manufactures two products: Product G 5 1 B and Product E 4 8 X . The company uses a plantwide overhead rate based
Aresco Corporation manufactures two products: Product GB and Product EX The company uses a plantwide overhead rate based
on direct laborhours. It is considering implementing an activitybased costing ABC system that allocates all of its manufacturing
overhead to four cost pools. The following additional information is available for the company as a whole and for Products GB and
EX
Required:
a Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product GB
b Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product EX
c Using the activitybased costing system, what percentage of the total overhead cost is assigned to Product GB
d Using the activitybased costing system, what percentage of the total overhead cost is assigned to Product EX
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