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Aresco Corporation manufactures two products: Product G51B and Product E48X. The company uses a plantwide overhead ra on direct labor-hours. It is considering implementing an
Aresco Corporation manufactures two products: Product G51B and Product E48X. The company uses a plantwide overhead ra on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufactur overhead to four cost pools. The following additional information is available for the company as a whole and for Products G5 E48X. Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Required A and B Product G51B 2,320 238 1 3,320 Required C and D Total Cost $ 108,000 $ 308,000 $ 88,000 $ 406,000 Product E48X 2,680 262 1 6,680 Complete this question by entering your answers in the tabs below. Total Activity 5,000 MHs 500 setups Required: a. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product G51B? b. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product E48X? c. Using the activity-based costing system, what percentage of the total overhead cost is assigned to Product G51B? d. Using the activity-based costing system, what percentage of the total overhead cost is assigned to Product E48X? 2 products 10,000 DLHs a. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product G51B? b. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product E48X? Note: Round plantwide overhead rate to 2 decimal places.
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