Multiple Choice
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. 
Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product J25M is closest to:
A) 50.00%
B) 30.00%
C) 15.15%
D) 19.87%
Correct Answer:
Verified
Correct Answer:
Verified
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