Answered step by step
Verified Expert Solution
Question
1 Approved Answer
! Required information (The following information applies to the questions displayed below.) Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of
! Required information (The following information applies to the questions displayed below.) Hickory Company manufactures two products13,000 units of Product Y and 5,000 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 $745,200 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: -d Activity Cost Pool Activity Measure Machining Machine-hours Machine setups Number of setups Number of Product design products Direct labor- General factory hours Estimated Expected Overhead Cost Activity $ 242,400 12,000 MHs $ 114,400 220 setups $ 86,000 2 products $ 302,400 14,400 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product z 7,200 4,800 40 180 1 1 8,200 6,200 2. 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 your final answers to the nearest whole dollar amount.) Product Product z $288,000 X $864,000 X $ Manufacturing overhead allocated
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started