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

To determine the manufacturing overhead cost assigned to Product B82O using the ABC system, we need to use the following formula:

Manufacturing overhead cost for Product B82O = (Activity rate for each cost pool x amount of cost driver that each product uses for that cost pool) for all four cost pools

Firstly, we need to calculate the activity rates for each cost pool:

- Activity rate for activity 1: $126,000 ÷ 10,500 = $12 per inspection hour
- Activity rate for activity 2: $231,000 ÷ 7,700 = $30 per machine hour
- Activity rate for activity 3: $525,000 ÷ 35,000 = $15 per direct labor-hour
- Activity rate for activity 4: $364,000 ÷ 8,000 = $45.50 per packaging order

Next, we need to determine how much of each cost driver each product uses for each activity:

- Product B82O uses 2,100 inspection hours, 3,500 machine hours, 2,100 direct labor-hours, and 1,400 packaging orders.
- Product P99Y uses 700 inspection hours, 1,400 machine hours, 7,000 direct labor-hours, and 700 packaging orders.

Using the activity rates and amounts of cost drivers for each product, we can calculate the manufacturing overhead cost assigned to Product B82O as follows:

- Activity 1 cost: $12 x 2,100 = $25,200
- Activity 2 cost: $30 x 3,500 = $105,000
- Activity 3 cost: $15 x 2,100 = $31,500
- Activity 4 cost: $45.50 x 1,400 = $63,700
- Total manufacturing overhead cost for Product B82O: $25,200 + $105,000 + $31,500 + $63,700 = $225,400

Therefore, the total manufacturing overhead cost assigned to Product B82O using the ABC system is $396,000 (Option C).