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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 $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 Estimated Overhead Expected Activity Measure Cost Activity 200,00 10,00 Machine-hours $ MHS 0 0 Number of 100,00 200 setups setups 0 Number of produc $ 84,000 2 products Direct 300,00 12,00 DLHS labor-hours 0 0 Product design ts General factory $ 50 Product Product Activity Measure Y 2 Machine-hours 7,000 3,000 Number of setups 150 Number of 1 1 products Direct 8,000 4,000 labor-hours 1. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 1 decimal place.) 2. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? 3. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? 4. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? 5. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z
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