Question
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
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 $729,000 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 PoolActivity MeasureEstimated Overhead CostExpected ActivityMachiningMachine-hours$231,60012,000MHsMachine setupsNumber of setups$55,900130setupsProduct designNumber of products$77,0002productsGeneral factoryDirect labor-hours$364,50014,400DLHs
Activity MeasureProduct YProduct ZMachine-hours6,3005,700Number of setups4090Number of products11Direct labor-hours9,0005,400
rev: 03_28_2018_QC_CS-122670
12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?(Round your "Percentage" answers to 2 decimal places.)
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