Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information (The following information applies to the questions displayed below.] Hickory Company manufactures two products14,000 units of Product Y and 6,000 units of Product

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Required information (The following information applies to the questions displayed below.] 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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $732,100 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 Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 209,000 $ 171,100 $ 93,000 $ 259,000 Expected Activity 10,000 MHS 290 setups 2 products 12,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 7,900 2,100 240 1 1 8,900 3,100 50 Required: 1. What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.) Plantwide overhead rate per DLH 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 Y Product Z Manufacturing overhead allocated 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Activity rate per MH 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product 6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Passive Activity Loss IRS Audit Technique Guide

Authors: Internal Revenue Service

1st Edition

1304114325, 978-1304114327

More Books

Students also viewed these Accounting questions