Question
Required information The Foundational 15 [LO7-1, LO7-3, LO7-4] [The following information applies to the questions displayed below.] Hickory Company manufactures two products15,000 units of Product
Required information
The Foundational 15 [LO7-1, LO7-3, LO7-4]
[The following information applies to the questions displayed below.]
Hickory Company manufactures two products15,000 units of Product Y and 7,000 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 $571,200 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:
Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | ||
Machining | Machine-hours | $ | 210,100 | 11,000 | MHs |
Machine setups | Number of setups | $ | 45,100 | 110 | setups |
Product design | Number of products | $ | 75,000 | 2 | products |
General factory | Direct labor-hours | $ | 241,000 | 13,200 | DLHs |
Activity Measure | Product Y | Product Z |
Machine-hours | 6,100 | 4,900 |
Number of setups | 50 | 60 |
Number of products | 1 | 1 |
Direct labor-hours | 7,100 | 6,100 |
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate calculations to 2 decimal places.)
10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?
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 2 decimal place.)
12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)
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.)
14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
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 2 decimal place.)
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