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I need help. Do not understand what I am doing wrong. For product Y 50.05% IS WRONG TOO. Can somebody show me correct calculations? Hickory
I need help. Do not understand what I am doing wrong. For product Y 50.05% IS WRONG TOO. Can somebody show me correct calculations?
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 labor-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 Cost Pool Machining Machine setups Production design General factory Cost $ 213,400 11,000 MHs $61,600 $ 78,000 $244,000 13,200 DLHs Activity Measure Expected Activity Machine-hours Number of setups Number of products Direct labor-hours 140 setups 2 products Activity Measure Product Y 6,400 60 Product Z 4,600 80 Machine-hours Number of setups Number of products Direct labor-hours 7,400 5,800Step by Step Solution
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