Weissman Corporation manufactures two products: Product E16S and Product P17K. The company 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 E16S and P17K.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$220,00011,000MHsMachine setupsNumber of setups$240,000400setupsProduct designNumber of products$74,0002products??Order sizeDirect labor-hours$270,00010,000DLHsActivity MeasureProduct E16SProduct P17KMachine-hours7,0004,000Number of setups270130Number of products11Direct labor-hours3,0007,000Using the ABC system, the percentage of the total overhead cost that is assigned to Product
E16S is closest to:
A. 10.07%
B. 50.00%
C. 52.24%
D. 42.16%
Answer: C
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