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Immen Corporation manufactures two products: Product B320 and Prcduct P99Y. The company uses a plantwide overnead rate based on direct labor-hours. It is considering implementing
Immen Corporation manufactures two products: Product B320 and Prcduct P99Y. The company uses a plantwide overnead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates ns manufacturing overhead to four cost pools. The rollowing additional information is available for the Company as a whole and for Products B820 and P99?. 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 Total Activity $338,000 15,000 MHs $300,000 0 setups $ 46,00 $330,e0 18,900 DLHs 2 products Activity Measure Machine-hours Number of setups Number of products Direct labor-hours B820 P99Y 7,800 8,900 200 300 3,800 7,080 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product 8820? Multiple Choice $704.200 $301,800 $510000 $503.000
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