Required information 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 Overhead Activity Measure Cost Expected Activity 10,000 MHS Machine-hours $ 195,000 $ Machining Machine setups Production design General factory Number of setups Number of products Direct labour-hours $ $ 67,500 79,000 245,000 150 setups 2 products 12,000 DLHS Activity Measure Product Y Product Z Machine-hours 6,500 3,500 50 100 Number of setups Number of products Direct labour-hours 1 1 7,500 4,500 Required: What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH Required information Hickory Company manufactures two products14,000 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 Overhead Cost Activity Measure Expected Activity 10,000 MHS Machining Machine-hours $ 195,000 $ 150 setups Machine setups Production design General factory Number of setups Number of products Direct labour-hours $ $ 67,500 79,000 245,000 2 products 12,000 DLHS Activity Measure Product Y Product Z Machine-hours 6,500 3,500 50 100 Number of setups Number of products Direct labour-hours 1 1 4,500 7,500 Required: Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Product Y Product Z Manufacturing overhead allocated Colby Company makes cases for cell phones of all sizes and types for sale through specialty retailers. The company makes a standard model for the most recent iPhone as well as a deluxe model. Management has designed an ABC system with the following activity cost pools and activity rates for these models: Activity Cost Pool Supporting manufacturing Order processing Customer service Activity Rates $2 per direct labour-hour $15 per order $81 per customer Management would like an analysis of the profitability of a particular customer, Cell City, which has ordered the following products over the last 12 months: Standard Model 150 Deluxe Model 35 5 2 Number of cases Number of orders Direct labour-hours per case Selling price per case Direct materials cost per case 0.25 35 0.40 55 $ $ $ $ 12 15 The company's direct labour rate is $16 per hour. Required: Using the company's ABC system, compute the customer margin of Cell City. Sales Costs: Direct materials Direct labour Supporting manufacturing Order processing Customer service Customer margin
