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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 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 $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 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 $ 206,000 10,000 MHS $ 145,600 260 setups $ 90,000 2 products $ 307,200 12,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product z 7,600 2,400 50 210 1 1 8,600 3,400 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.) Product Y Product z Machine setups cost % 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? Product Y Product z Product design cost % 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? "Percentage" answers to 2 decimal place.) Product Y Product z General factory cost % %
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