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Please answer questions 9, and 10. Thank you. Chapter 2 Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z.
Please answer questions 9, and 10. Thank you. Chapter 2 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 10,000 MH Machine setups $100,000 Machine-hours Number of setups Number of products Direct labour- hours 200 setups 2 products Product design $ 84,000 General factory $300,000 12,000 DLHS Product Produc Y tz Machine-hours 7,000 3,000 Number of setups 50 150 Number of products 1 Direct labour- hours Required: 8,000 4,000 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? 6. 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? 8. 7-8 Which of the four activities is a product-level activity? Why? 9. 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 9, and 10. Thank you.
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