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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
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 $684,000 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 Activity Measure Machine-hours Number of setups. Number of products Direct labor-hours Estimated Overhead Product Y Product Z 6,600 40 5,400 120 1 7,600 1 6,800 Cost $ 235,200 $ 73,600 Expected Activity 12,000 MHS 160 setups 2 products $ 80,000 $ 295,200 14,400 DLHS 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? Note: Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole dollar amount. Product Y Product Z Manufacturing overhead allocated 3. What is the activity rate for the Machining activity cost pool? Note: Round your answer to 2 decimal places. Activity rate per MH 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product 6. What is the activity rate for the General Factory activity cost pool? Note: Round your answer to 2 decimal places. Activity rate per DLH 7. Which of the four activities is a batch-level activity? 8. Which of the four activities is a product-level activity? 9. Using the ABC system, how much total manufacturing overhead cost is assigned to Product Y? Note: Round all intermediate calculations to 2 decimal places. Total manufacturing overhead cost 10. Using the ABC system, how much total manufacturing overhead cost is assigned to Product Z? Note: Round intermediate calculations to 2 decimal places and final answer to the nearest whole dollar. Total manufacturing overhead cost 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Note: Round intermediate calculations and 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? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. Product Y Machine setups cost Product Z % 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? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place. Product Y Product Z General factory cost
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