Muller Corporation manufactures two products: Product MS7 an…
Muller Corporation manufactures two products: Product MS7 and Product RD6. The company uses a plantwide overhead rate based on machine-hours. The following additional information is available for the company and for Products MS7 and RD6. Activity Cost Pool Activity Measure Total Cost Total Activity Machining Machine-hours $ 120,000 6,000 MHs Machine setups Number of setups $ 90,000 150 setups Product design Number of products $ 84,000 2 products General factory Direct labor-hours $ 300,000 10,000 DLHs Activity Measure Product MS7 Product RD6 Machine-hours 4,000 2,000 Number of setups 90 60 Number of products 1 1 Direct labor-hours 7,000 3,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product MS7 is closest to:
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