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Question 18 1 pts Ben Corporation manufactures two products: Product E05G and Product L64Y. The company uses a plantwide overhead rate based on direct labor-hours.
Question 18 1 pts Ben Corporation manufactures two products: Product E05G and Product L64Y. 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 $285,00015,000MHs Machine setups Number of setups $180,000 300setups Product design Number of products $64,000 2products General factory Direct labor-hours $350,00010,000DLHS Activity Measure Product E05G Product L64Y Machine-hours 12,000 3,000 Number of setups 170 130 Number of products 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: 1 1 O 27.87% 19.00% 30.00% O 50.00%
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