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Arrojo Corporation Manufactures Two Products: Product X71B and Product C91I

Question 277

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Arrojo Corporation manufactures two products: Product X71B and Product C91I. 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 X71B and C91I. Arrojo Corporation manufactures two products: Product X71B and Product C91I. 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 X71B and C91I.   Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product X71B? A)  $416,500 B)  $499,800 C)  $333,200 D)  $372,000 Using the plantwide overhead rate, how much manufacturing overhead cost would be allocated to Product X71B?


A) $416,500
B) $499,800
C) $333,200
D) $372,000

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