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Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct
Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-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: Estimated overhead Activity Measure Expected Activity Machining Machine-hours $210, 100 11,000 MAS Machine setups Number of setups $ 45,100 110 setups Production design Number of products $ 75,000 2 products General factory Direct labour-hours $241,000 13,200 DLHS Cout Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 6,100 50 1 7,100 Product X 4,900 60 1 6,100 Required: What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Product Product z Manufacturing overhead allocated Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round Intermediate calculations and round your final answer to the nearest dollar amount.) Total manufacturing overhead cost
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