Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

all parts needed, explanations greatly appreciated ! Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses

all parts needed, explanations greatly appreciated ! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 $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 Estimated Overhead Expected Cost Activity $ 209,000 10,000 MHs $ 171, 100 290 setups $ 93,000 2 products $ 259,000 12,000 DLHS es Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product YProduct Z 7,900 2,100 50 240 1 1 8,900 3,100 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate calculations to 2 decimal places.) Total manufacturing overhead cost 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Total manufacturing overhead cost 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.) Product Z Product Y % Manufacturing overhead % 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.) Product Y Product z Machining cost % % 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.) Product Y Product z Machine setups cost % 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? Product Y Product z Product design cost % % 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.) Product Y Product Z General factory cost % %

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

Students also viewed these Accounting questions