Business, 24.05.2020 00:00 jrassicworld4ever

Orear Corporation manufactures two products: Product Z34D and Product J25M. 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 Z34D and J25M.
Activity Cost Pool Activity Measure Total Cost Total Activity
Machining Machine-hours $ 120,000 6,000 MHs
Machine setups Number of setups $ 90,000 150 setups
Product design Number of products $ 84,000 2 products
General factory Direct labor-hours $ 300,000 10,000 DLHs
Activity Measure Product Z34D Product J25M
Machine-hours 4,000 2,000
Number of setups 90 60
Number of products 1 1
Direct labor-hours 7,000 3,000
Required:
1. Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product J25M is closest to .

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Orear Corporation manufactures two products: Product Z34D and Product J25M. The company uses a plant...

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