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Hails Corporation Manufactures Two Products: Product Q21F and Product H44W

Question 156

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Hails Corporation manufactures two products: Product Q21F and Product H44W. 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 Q21F and H44W. Hails Corporation manufactures two products: Product Q21F and Product H44W. 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 Q21F and H44W.   Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product H44W is closest to: A)  40.00% B)  50.00% C)  17.81% D)  21.30% Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product H44W is closest to:


A) 40.00%
B) 50.00%
C) 17.81%
D) 21.30%

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