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Required information The Foundational 15 [LO7-1, L07-3, LO74 [The following information applies to the questions displayed below.j Hickory Company manufactures two products-13,000 units of Product
Required information The Foundational 15 [LO7-1, L07-3, LO74 [The following information applies to the questions displayed below.j Hickory Company manufactures two products-13,000 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 $813,600 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: Estimated Overhead Expected Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products 92,000 Direct labor-hours 309, 600 14,400 DLHs Cost Activity S 249,600 12,000 MHs s162,400 280 setups 2 products Product Product Activity Measure Machine-hours Number of setups Number of products Direct labor-hours 7,800 40 4,200 240 8,800 5,600 1. What is the company's plantwide overhead rate? per DLH Prod Z 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? per MH 3. What is the activity rate for the Machining activity cost pool? 4. What is the activity rate for the Machine Setups activity cost pool? 5. What is the activity rate for the Product Design activity cost pool? 6. What is the activity rate for the General Factory activity cost pool?p DLH 7. Which is a batch-level activity? A) Machining B) General Factory C) Product Design D) Machine Setups 8. Which is a product-level activity? A) Machining B) General Factory C) Product Design D) Machine Setups per product -- per DLH 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? total MF Cost for Y 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? total MF Cost for Z Prod Y Prod Z 11. Using the plantwide overhead rate, what % of the total overhead cost is allocated to Product Y and Product Z? Prod Y Prod Z 12. Using the ABC system, what % of the Machining cost is allocated to Product Y and Product Z? Prod Y Prod Z 13. Using the ABC system, what % of the Machine Setups cost is allocated to Product Y and Product Z? Prod Y Prod Z 14. Using the ABC system, what % of the Product Design cost is allocated to Product Y and Product Z? Prod Y Prod Z 15. Using the ABC system, what % of the General Factory cost is allocated to Product Y and Product Z
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