5) Ben Corporation manufactures two products: Product E05G and Product L64Y. The company uses a plantwide overhead rate based on direct labor-hours. It is considering mplementing an activity-based costing (ABC) system that allocates its manufacturing overheaw co four cost pools. The following additional information is available for the company as a whola and for Products E05G and L64Y. Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Activity $ 285,000 15,000 MHs Total Cost $ 180,000 300 setups $ 64,000 S 350,000 10,000 DLHS 2 products Activity Measure Machine-hours Product E0SG 12,000 170 Product L64Y 3,000 130 Number of setups Number of products Direct labor-hours 3.000 7,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product E05G is closest to: A) 27.87% B) 19.00% C) 30.00% D) 50.00%

5) Ben Corporation manufactures two products: Product E05G and Product L64Y. The company uses a plantwide overhead rate based on direct labor-hours. It is considering mplementing an activity-based costing (ABC) system that allocates its manufacturing overheaw co four cost pools. The following additional information is available for the company as a whola and for Products E05G and L64Y. Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Activity $ 285,000 15,000 MHs Total Cost $ 180,000 300 setups $ 64,000 S 350,000 10,000 DLHS 2 products Activity Measure Machine-hours Product E0SG 12,000 170 Product L64Y 3,000 130 Number of setups Number of products Direct labor-hours 3.000 7,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product E05G is closest to: A) 27.87% B) 19.00% C) 30.00% D) 50.00%

Name: 45) Ben Corporation manufactures two products: Product E05G and Produ
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Description: 45) Ben Corporation manufactures two products: Product E05G and Product L64Y. Thecompany uses a plantwide overhead rate based on direct labor-hours. It is consideringimplementing an activity-based costing (ABC) system that allocates its manufacturin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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