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What percentage of machine time does Product B use?

What percentage of machine time does Product B use?

FINANCIAL ACCOUNTING
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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Product B was allocated $69,020 less overhead after XYZ Corp switched to Activity Based Costing. XYZ Corp previously allocated overhead using only direct labor hours. Product B uses 65 percent of direct labo time. XYZ now uses both direct labor hours and machine hours to allocate overhead. $238,000 of overhead has been allocated to the machine pool. What percentage of machine time does Product B use?
Transcribed Image Text:Product B was allocated $69,020 less overhead after XYZ Corp switched to Activity Based Costing. XYZ Corp previously allocated overhead using only direct labor hours. Product B uses 65 percent of direct labo time. XYZ now uses both direct labor hours and machine hours to allocate overhead. $238,000 of overhead has been allocated to the machine pool. What percentage of machine time does Product B use?
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