Question
Hickory Company Hickory Company manufactures two products15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based
Hickory Company Hickory Company manufactures two products15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-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:
Activity Measure - Estimated Overhead - Cost Expected
Activity Machining - Machine-hours $ 213,400 -11,000 MH
Machine setups - Number of setups $ 61,600 - 140 setups
Product design - Number of products $ 78,000 - 2 products
General factory - Direct labour-hours $ 244,000 - 13,200 DLHs
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Activity Measure - Product Y - Product Z
Machine-hours - 6,400 - 4,600
Number of setups - 60 - 80
Number of products - 1 - 1
Direct labour-hours - 7,400 - 5,800
Required: 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 final answers to the nearest dollar amount.)
Manufacturing overhead allocated per Product Y and Product Z: ?
[The following information applies to the questions displayed below.] Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-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 : Pequired: Ising the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your ntermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)Step by Step Solution
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