Immen Corporation manufactures two products: Product B820 and Product P99Y. The company uses a plantwide overhead...

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Immen Corporation manufactures two products: Product B820 and Product P99Y. 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 B820 and P99Y. Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Activity Total Cost $ 330,000 15,000 MHS $ 300,000 500 setups $ 46,000 2 products $ 330,000 10,000 DLHS Product Product B820 P99Y 7,000 8,000 200 300 1 1 Number of products Direct labor-hours 3,000 7,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product B820? Immen Corporation manufactures two products: Product B820 and Product P99Y. 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 B820 and P99Y. Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Activity Total Cost $ 330,000 15,000 MHS $ 300,000 500 setups $ 46,000 2 products $ 330,000 10,000 DLHS Product Product B820 P99Y 7,000 8,000 200 300 1 1 Number of products Direct labor-hours 3,000 7,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product B820?

Answer rating: 100% (QA)

Activity Based Costing ABC is a precise method of costing that assigns the costs to spec... View the full answer