Cambra Corporation manufactures two products: Product N70E and Product F54Y. 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 N70E and F54Y.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$171,0009,000MHsMachine setupsNumber of setups$150,000250setupsProduct designNumber of products$78,0002products??Order sizeDirect labor-hours$330,00010,000DLHsActivity MeasureProduct N70EProduct F54YMachine-hours5,0004,000Number of setups150100Number of products11Direct labor-hours4,0006,000Using the ABC system, the percentage of the total overhead cost that is assigned to Product F54Y
is closest to:
A. 24.01%
B. 50.00%
C. 27.16%
D. 51.17%
Answer: D
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