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Hickory Company manufactures two products15,000 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 products15,000 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:
Activity Measure | Estimated Overhead Cost | Expected Activity | ||||
Machining | Machine-hours | $ | 210,100 | 11,000 | MH | |
Machine setups | Number of setups | $ | 45,100 | 110 | setups | |
Product design | Number of products | $ | 75,000 | 2 | products | |
General factory | Direct labour-hours | $ | 241,000 | 13,200 | DLHs | |
Activity Measure | Product Y | Product Z | ||||
Machine-hours | 6,100 | 4,900 | ||||
Number of setups | 50 | 60 | ||||
Number of products | 1 | 1 | ||||
Direct labour-hours | 7,100 | 6,100 | ||||
Required: What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Required: Which of the four activities is a batch-level activity? Machine setups activity Machining activity General factory activity Product design activity Required: Which of the four activities is a product-level activity? Machine setups activity General factory activity Product design activity Machining activity 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.) Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.) Required: Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z ? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).) Required: Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z ? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34 ).) Required: Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34 ).) Required: Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) Required: Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z ? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)
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