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 Number of products Direct labor-hours Total Cost Total Activity $ 330,000 15,000 MHs $ 300,000 500 setups $ 46,000 2 products $ 330,000 10,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product B820 P99Y 7,000 8,000 200 300 1 1 7,000 3,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated 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 Number of products Direct labor-hours Total Cost Total Activity $ 330,000 15,000 MHs $ 300,000 500 setups $ 46,000 2 products $ 330,000 10,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product B820 P99Y 7,000 8,000 200 300 1 1 7,000 3,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product B820?
Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter4: Activity-based Costing
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Problem 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...
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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
Number of products
Direct labor-hours
Total Cost
Total Activity
$ 330,000
15,000 MHs
$ 300,000
500 setups
$ 46,000
2 products
$ 330,000
10,000 DLHS
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Product Product
B820
P99Y
7,000
8,000
200
300
1
1
7,000
3,000
Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product B820?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8d83efcd-ac3f-41fe-979f-ac181904193a%2F68e8af12-0b8a-4c27-964f-ead946ced4a1%2F6gpe0vb_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
Number of products
Direct labor-hours
Total Cost
Total Activity
$ 330,000
15,000 MHs
$ 300,000
500 setups
$ 46,000
2 products
$ 330,000
10,000 DLHS
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Product Product
B820
P99Y
7,000
8,000
200
300
1
1
7,000
3,000
Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product B820?
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