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Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product
Required information [The following information applies to the questions displayed below.] 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 Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product YProduct Z 7,000 50 1 3,000 150 1 8,000 4,000 Required: 1. What is the company's plantwide overhead rate? Plantwide overhead rate per DLH Estimated Overhead Cost $ 200,000 $ 100,000 $ 84,000 $300,000 Expected Activity 10,000 MHS 200 setups 2 products 12,000 DLHS 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 1 decimal place.) Product Y Product Z Manufacturing overhead % % 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Product Y Product Z Machining cost % % 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Product Y Product Z Machine setups cost % % 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? Product Y Product Z Product design cost % % 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 1 decimal place.) Product Y Product Z General factory cost % %
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