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Ben Corporation manufactures two products: Product E05G and Product L647. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing

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Ben Corporation manufactures two products: Product E05G and Product L647. 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 E05G and L64Y. Activity Cost Pool Activity Measure Total Cost Total activity Machining Machine-hours $ 285,000 15,000 MHS Machine setups Number of setups $ 180,000 300 setups Product design Number of products $ 64,000 2 products Order size Direct labor-hours $ 350,000 10,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product E05G L647 12,000 3,000 170 130 1 3,000 7,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product E05G is closest to: Direct labor-hours 3,000 7,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product E05G is closest to: Multiple Choice 50.00% 27.87% 19.00% 30.00%

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