Younan Corporation manufactures two products: Product E47F and Product D02M. 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 E47F and D02M.Activity Cost PoolActivity MeasureTotal CostTotal ActivityMachiningMachine-hours$165,00011,000MHsMachine setupsNumber of setups$150,000250setupsProduct designNumber of products$70,0002productsOrder sizeDirect labor-hours 310,00010,000DLHsActivity MeasureProduct E47FProduct D02MMachine-hours5,0006,000Number of setups20050Number of products11Direct labor-hours4,0006,000Using the ABC system, the percentage of the total overhead cost that is assigned to Product D02M is
closest to:
A. 26.76%
B. 50.00%
C. 49.06%
D. 22.30%
Answer: C
Business
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