Immen Corporation Manufactures Two Products: Product B82O and Product P99Y

Multiple Choice

Immen Corporation manufactures two products: Product B82O and Product P99Y. 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 B82O and P99Y. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product B82O?

A) $503,000
B) $297,000
C) $396,000
D) $99,000