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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

Hickory Company manufactures two products—14,000 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 $748,800 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 Activity
MachiningMachine-hours$ 206,00010,000MHs
Machine setupsNumber of setups$ 145,600260setups
Product designNumber of products$ 90,0002products
General factoryDirect labor-hours$ 307,20012,000DLHs

 

Activity MeasureProduct YProduct Z
Machine-hours7,6002,400
Number of setups50210
Number of products11
Direct labor-hours8,6003,400




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.)

 


13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)


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


15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)




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