Questions 11-15

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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $684,000 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 Cost Pool Activity Measure Estimated Overhead Cost Expected Activity 10,000 MHS Machine-hours $200,000 $100,000 Machining Machine setups Product design General factory Number of setups Number of products Direct labor-hours $84,000 $300,000 200 setups 2 products 12,000 DLHS Activity Measure Product Y 7,000 Product Z 3.000 Machine-hours 50 150 Number of setups Number of products 1 Direct labor-hours 8,000 4,000 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y? What percentage is allocated to Product Z? 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y? What percentage is assigned to Product Z? Are these percentages similar to those obtained in requirement 11? Why? 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y? What percentage is assigned to Product Z? Are these percentages similar to those obtained in requirement 11? Why? 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y? What percentage is assigned to Product Z? Are these percentages similar to those obtained in requirement 112 Why? 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y? What percentage is assigned to Product Z? Are these percentages similar to those obtained in requirement 11? Why? Main con