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Ben Corporation manufactures two products: Product E05G and Product L64Y. 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 EOSG and L64Y. Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Cont $ 285,000 $ 180,000 $ 64,000 $ 350,000 Total activity 15,000 MHS 300 setups 2 products 10,000 DLA Product Product Activity Measure E05G L647 Machine-hours 12,000 3,000 Number of setups 170 130 Number of products 1 1 Direct labor-hours 3,000 7,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product EOSG is closest to: Multiple Choice O 50.00% Direct DOT-hout 000 7,000 Using the plantwide overhead rate, the percentage of the total overhead cost that is allocated to Product EOSG is closest to Multiple Choice 50.00% 27.87% 19.00% 30.00% Silver Corporation produces a single product. Last year, the company's variable production costs totaled $7,500 and its find manufacturing overhead costs totaled $4,500. The company produced 3,000 units during the year and sold 2,400 units. There were no units in the beginning Inventory. Which of the following statements is true? Multiple Choice The ending Inventory under variable costing will be $900 lower than the ending Inventory under absorption costing. The net operating income under absorption costing for the year will be $900 lower than the net operating Income under variable costing Under variable costing, the units in the ending Inventory will be costed at $4.00 each. Under absorption costing, the units in ending Inventory will be costed at $2.50 each.

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