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A. What is the company's plantwide overhead rate? B. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to product Y and
A. What is the company's plantwide overhead rate?
B. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to product Y and Product Z?
C. What is the activity rate for the machining activity cost pool?
D. What is the activity rate for the machine setups activity cost pool?
E. What is the activity rate for the Product Design activity cost pool?
Hickory Company manufactures two products-13,000 units of Product Y and 5,000 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 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 Overhead Activity Cost Pool Machiningg Machine setups Production design General factory Activity Measure Expected Activity Cost 228,000 12,000 MHs Machine-hours $ 40,000 74,000 100 setups Number of setups Number of products Direct labor-hours 2 products $288,000 14,400 DLHs Activity Measure Product Y Product Z 0,000 2,000 60 Machine-hours Number of setups Number of products Direct labor-hours 40 7000 7,400
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