Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A) B) C) 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

image text in transcribed
A)
image text in transcribed
B)
image text in transcribed
C)
image text in transcribed
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 $614,400 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: Estimated Expected Overhead Cost Activity $ 198,000 10,000 MHs $ a 86,400 18 setups Activity Cost Activity Pool Measure Machining Machine-hours Machine setups Number of Number of Product design General Direct labor- bor- factory hours $ products 82,000 2 products 24 248,000 12,000 DLHS $ Product Product 6,800 50 3,200 130 Activity Measure Machine-hours Number of setups Number of products Direct labor hours 1 7,800 4,200 Required: 1. What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.) Plantwide overhead rate per DLH 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount.) Product Y Product Z Manufacturing overhead allocated 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Activity rate per MH

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

For Mowen/hansen/heitgers Cornerstones Of Managerial Accounting, 6th Edition, [instant Access]

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

6th Edition

1305280768, 9781305280762

More Books

Students also viewed these Accounting questions

Question

Why is interest in portable benefits in health care increasing?

Answered: 1 week ago