1) What is the company's plantwide overhead rate?

2) Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z

3) What is the activity rate for the Machining activity cost pool?

4) What is the activity rate for the Machine Setups activity cost pool? 

5) What is the activity rate for the Product Design activity cost pool?

 

Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC). system that allocates all $732,100 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Product Y Product Z 7,900 50 1 8,900 2,100 240 1 3,100 Cost $ 209,000 $ 171,100 $ 93,000 $ 259,000 Expected Activity 10,000 MHS 290 setups 2 products 12,000 DLHS