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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
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?
6. What is the activity rate for the General Factory activity cost pool?
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?
Hickory Company manufactures two products14,000 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 $684,000 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 Activity Measure Machining Machine-hours Machine setups Number of setups Number of Product design products General factory Direct labor- hours Estimated Expected Overhead Cost Activity $ 200,000 10,000 MHs $ 100,000 200 setups 84,000 2 products $ 300,000 12,000 DLHS $ Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product z 7,000 3,000 50 150 1 1 8,000 4,000
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