Assignment \#2 7. Which of the four activities is a batch-level activity? Why? Ensure that you show your calculations! 8. Which of the four activities is a product-level activity? Why? PART 1 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y ? 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 labour- 10. Using the ABC system, how much total manufacturing overhead cost would be hours. It is considering implementing an activity-based costing (ABC) system that assigned to Product Z ? 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 : PART 2 Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units. Kequared: What is the company's plantwide overhead rate? Kequared: Using the plantwide overhead rate, how much manufacturing overhead cost is Answer each question independently based on the original data unless instructed allocated to Product Y ? How much is allocated to Product Z ? otherwise. 1. What is the unit product cost under variable costing? What is the activity rate for the Machining activity cost pool? 2. What is the unit product cost under absorption costing? 3. What is the company's total contribution margin under variable costing? What is the activity rate for the Machine Setups activity cost pool? 4. What is the company's net operating income under variable costing? 5. What is the company's total gross margin under absorption costing? What is the activity rate for the Product Design activity cost pool? 6. What is the company's net operating income under absorption costing? 7. What is the company's break-even point in unit sales? Is it above or below the actual What is the activity rate for the General Factory activity cost pool? sales volume? Compare the break-even sales volume to your answer for question 6 and comment