Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hickory Company manufactures two products 1 3 , 0 0 0 units of Product Y and 5 , 0 0 0 units of Product Z

Hickory Company manufactures two products13,000 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 $788,400 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:
Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 238,80012,000 MHs
Machine setups Number of setups $ 93,100190 setups
Product design Number of products $ 83,0002 products
General factory Direct labor-hours $ 373,50014,400 DLHs
Activity Measure Product Y Product Z
Machine-hours 6,9005,100
Number of setups 40150
Number of products 11
Direct labor-hours 7,9006,500
Please solve all Thank you.
1.Plant wide overhead rate?
2. Manufacturing overhead allocated for both products
3. Activity rate per MH
4.Activity rate per setup
5. Activity Rate per product
6.Activity rate per DLH
7.Using the ABC system, how much total manufacturing overhead cost is assigned to Product Y?
8. Using the ABC system, how much total manufacturing overhead cost is assigned to Product Z?
9.Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?
10. sing the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?
11.Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?
12.Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
13. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

9th Edition

125972266X, 9781259722660

More Books

Students also viewed these Accounting questions

Question

Define productivity. Appendix

Answered: 1 week ago

Question

How can ergonomics be tied to productivity? Appendix

Answered: 1 week ago