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Fletes Corporation Manufactures Two Products: Product O95C and Product M31N

Question 191

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Fletes Corporation manufactures two products: Product O95C and Product M31N. 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 O95C and M31N. Fletes Corporation manufactures two products: Product O95C and Product M31N. 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 O95C and M31N.   Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C? A)  $392,500 B)  $136,000 C)  $399,000 D)  $263,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product O95C?


A) $392,500
B) $136,000
C) $399,000
D) $263,000

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