Hickory Company manufactures two products14,000 units of Product Y and 6,000 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 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	$	200,000	10,000	MHs
Machine setups	Number of setups	$	100,000	200	setups
Production design	Number of products	$	84,000	2	products
General factory	Direct labor-hours	$	300,000	12,000	DLHs

Activity Measure	Product Y	Product Z
Machine-hours	7,000	3,000
Number of setups	50	150
Number of products	1	1
Direct labor-hours	8,000	4,000

rev: 10_24_2014_QC_57437

1.

value: 0.33 points

Required information

Required:

What is the companys plantwide overhead rate?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

2.

value: 0.33 points

Required information

Required:

Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

3.

value: 0.33 points

Required information

Required:

What is the activity rate for the Machining activity cost pool?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

4.

value: 0.33 points

Required information

Required:

What is the activity rate for the Machine Setups activity cost pool?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

5.

value: 0.33 points

Required information

Required:

What is the activity rate for the Product Design activity cost pool?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

6.

value: 0.33 points

Required information

Required:

What is the activity rate for the General Factory activity cost pool?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

7.

value: 0.33 points

Required information

Required:

Which of the four activities is a batch-level activity?

	Machining activity
	Machine setups activity
	General factory activity
	Product design activity

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

8.

value: 0.33 points

Required information

Required:

Which of the four activities is a product-level activity?

	Machining activity
	Product design activity
	Machine setups activity
	General factory activity

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

9.

value: 0.33 points

Required information

Required:

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediate calculations.)

rev: 10_24_2014_QC_57437

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

10.

value: 0.33 points

Required information

Required:

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations.)

rev: 10_24_2014_QC_57437

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

11.

value: 0.33 points

Required information

Required:

Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3))

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

12.

value: 0.33 points

Required information

Required:

Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

13.

value: 0.33 points

Required information

Required:

Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

14.

value: 0.33 points

Required information

Required:

Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

References

eBook & Resources

WorksheetLearning Objective: 07-01 Understand activity-based costing and how it differs from a traditional costing system.Learning Objective: 07-04 Assign costs to a cost object using a second-stage allocation.

Difficulty: 2 MediumLearning Objective: 07-03 Compute activity rates for cost pools.

Check my work

15.

value: 0.38 points

Required information

Required:

Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3))