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Business, 29.01.2021 02:40 kitttimothy55
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 Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 165,000 11,000 MHs Machine setups Number of setups $ 150,000 250 setups Product design Number of products $ 70,000 2 products Order size Direct labor-hours $ 310,000 10,000 DLHs Activity Measure Product E47F Product D02M Machine-hours 5,000 6,000 Number of setups 200 50 Number of products 1 1 Direct labor-hours 4,000 6,000 Using the ABC system, the percentage of the total overhead cost that is assigned to Product D02M is closest to:
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