Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions