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 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 $705,600 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 Activity Measure Machine-hours Number of setups Number of products Estimated Overhead Cost $ 192,000 Expected Activity 10,000 MHs 120 setups $ 50,400 $ 76,000 12,000 DLHS 2 products General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Direct labor-hours Product Y Product Z 6,200 3,800 50 70 1 10,000 1 2,000 $ 387,200 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.) Product Y Product Z Machine setups cost % %
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