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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 direct
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 Cost $ 235,200 Estimated Overhead $ 73,600 Expected Activity 12,000 MHS 160 setups $ 80,000 $ 295,200 2 products 14,400 DLHS Product Y Product Z 6,600 40 5,400 120 1 1 7,600 6,800 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Note: Round your "Percentage" answers to 2 decimal places. Product Y Product Z Machining cost % % 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: Estimated Overhead Activity Cost Pool Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Cost $ 235,200 $ 73,600 Expected Activity 12,000 MHs 160 setups $ 80,000 $ 295,200 2 products 14,400 DLHS General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 6,600 40 5,400 120 1 1 7,600 6,800 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Note: Round your "Percentage" answers to 2 decimal places. Product Y Product Z Machine setups cost % %
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