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Walsh Corporation manufactures two products: Product H95V and Product V93N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing
Walsh Corporation manufactures two products: Product H95V and Product V93N. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products H95V and V93N. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 242,000 11,000 MHs Machine setups Number of setups $ 140,000 350 setups Product design Number of products $ 70,000 2 products General factory Direct labor-hours $ 270,000 10,000 DLHs Activity Measure Product H95V Product V93N Machine-hours 6,000 5,000 Number of setups 250 100 Number of products 1 1 Direct labor-hours 6,000 4,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product H95V? Select one: a. $361,000 b. $288,800 c. $433,200 d. $293,000
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