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Immen Corporation manufactures two products: Product B 8 2 O and Product P 9 9 Y . The company uses a plantwide overhead rate based
Immen Corporation manufactures two products: Product BO and Product PY The company uses a plantwide overhead rate based on direct laborhours. It is considering implementing an activitybased 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 BO and PY Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machinehours $ MHs Machine setups Number of setups $ setups Product design Number of products $ products Order size Direct laborhours $ DLHs Activity Measure Product BO Product PY Machinehours Number of setups Number of products Direct laborhours Using the ABC system, how much total manufacturing overhead cost would be assigned to Product BO Multiple Choice $ $ $ $
Immen Corporation manufactures two products: Product BO and Product PY The company uses a plantwide overhead rate based on direct laborhours. It is considering implementing an activitybased 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 BO and PY
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machinehours $ MHs
Machine setups Number of setups $ setups
Product design Number of products $ products
Order size Direct laborhours $ DLHs
Activity Measure Product BO Product PY
Machinehours
Number of setups
Number of products
Direct laborhours
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product BO
Multiple Choice
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