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Please answer questions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10. Thank you. Hickory Company manufactures two products--14,000 units of Product Y
Please answer questions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10. Thank you. Hickory Company manufactures two products--14,000 units of Product Y and 6,000 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 Activity Overhead Expected Measure Cost Activity Machining $200,000 Machine-hours Number of setups Number of products 10,000 MH 200 setups Machine setups $100,000 Product design $ 84,000 products General factory Direct labour- hours $300,000 12,000 DLHs Product Produc tZ 7,000 3,000 Machine-hours Number of setups 50 150 Number of products i 1 Direct labour- hours Required: 8,000 4,000 7-1 What is the company's plantwide overhead rate? 7-2 Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y? How much is allocated to Product Z? 7-3 What is the activity rate for the Machining activity cost pool? 7-4 What is the activity rate for the Machine Setups activity cost pool? - 7-5 What is the activity rate for the Product Design activity cost pool? 7-6 What is the activity rate for the General Factory activity cost pool? 7-7 Which of the four activities is a batch-level activity? Why? 7-8 Which of the four activities is a product-level activity? Why? 7-9 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? 10. 7-10 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z
Please answer questions 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10. Thank you.
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