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Bippus Corporation manufactures two products: Product XDBR and Product P56L The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing
Bippus Corporation manufactures two products: Product XDBR and Product P56L The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing 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 XOBR and P56L Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Cost 284,000 Total Activity 13,000 MH 60,000 150 setups 50.000 2 products 260,000 11,000 OLH Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product XOR Product P56L 10,000 3,000 110. 40 1 7,000 4,000 Required: Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product XODER Required: Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product XO8R? A. $418,000 B. $310,500 C. $473,800 OD. $420,000
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