Assume that a company makes only three products: Product A$,$ Product B$,$ and Product $C.$ Currently, the company uses a

traditional cost system that relies on plantwide overhead cost allocation based on direct labor$-$hours. It is considering

replacing its traditional cost system with an activity$-$based costing $($ABC$)$ system for intemal management purposes.

The ABC system would include a total of four activities: Assembly $($allocated to products based on direct labor$-$hours$).$

Machine Setups $($allocated to products based on number of setups$).$ Material Handling $($allocated to products based on the

number of material moves$),$ and Product Design $($allocated to products based on the number of products$).$

Using the plantwide approach, what percent of the company's total overhead cost would be allocated to Product C$?$

Multiple Cholce

$33\%$

$10\%$

$20\%$

$15\%$