Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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 avallable for the company as a whole and for Products Y and Z: Estimated Overhead Expected Activity Cost Pool Activity Measure Cost Activity Machining Machine-hours $ 235,200 12,800 MHs Machine setups Number of setups $ 73,668 168 setups Product design Number of products $ 88,888 2 products General factory Direct labor-hours $ 295,200 14,408 DLHS Product Product Activity Measure Machine-hours Number of setups Number of products Direct labor-hours 6,6% 40 1 7,600 5,480 128 1 6,880 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 Hickory Company manufactures two products-13,000 units of Product Y and 5,000 units of Pro 2. 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 Estimated Overhead Expected Cost Activity $ 235,200 12,800 MHS $ 73,680 168 setups $ 80, 808 2 products $295,200 14,408 BLHS Product Product Activity Measure Machine-hours Number of setups Number of products Direct labor-hours 6,6ee 40 1 7,6ee 5,400 120 1 6,800 3. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Total manufacturing overhead cont 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 avallable 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 $ 235,200 12,808 MHs $ 73,600 168 setups $ 80,000 2 products $ 295,200 14,400 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product Z 6,600 5,400 40 120 1 1 7,682 6,880 Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Rounc Our "Percentage" answers to 2 decimal place.) Product Y Product Z Manufacturing verhead %

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

Recommended Textbook for

Finance Business Discover Types Of Audits Balance Sheets And Assertions

Authors: Carleen Legalley

1st Edition

B0B5KVD4FZ, 979-8839194779

More Books

Students also viewed these Accounting questions

Question

What is the environment we are trying to create?

Answered: 1 week ago

Question

How can we visually describe our goals?

Answered: 1 week ago