Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
[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 $614,400 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 Estimated overhead Expected Activity Measure Cost Activity Machine-hours $ 198,000 10,000 MA Number of setups $ 86,400 180 stupe Number of products $82,000 2 products Direct labor-hours $249,000 12,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product X 6,800 3,200 50 130 1 1 7.800 4,200 Foundational 7-10 (Algo) 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product 27 Total manufacturing overhead cost [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 $614,400 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 Eactory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 190,000 $ 86,400 $ 82,000 $ 248,000 Expected Activity 10,000 MHs 180 setups 2 products 12,000 DLHS Activity Measure Machine-hours Number of setupa Number of products Direct labor-hours Product Y Product ? 6,800 3,200 50 130 1 1 7.800 4,200 Foundational 7-11 (Algo) 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.) Product Y Product z Manufacturing overhead % % 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 $614,400 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 $ 198.000 $ 86,400 $ 82,000 $ 248,000 Expected Activity 10,000 MIS 180 setups 2 products 12,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-houro Product Product ? 6,800 3,200 50 130 1 1 7,800 4,200 Foundational 7-12 (Algo) 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.) Product Z Product Y % Machining cost % 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 % 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 2 decimal place.) Product Y Product z General factory cost %

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_2

Step: 3

blur-text-image_3

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

Marketing Audit Checklists A Guide To Effective Marketing Resource Realization

Authors: Aubrey Wilson

1st Edition

0077077601, 978-0077077600

More Books

Students also viewed these Accounting questions

Question

Explain the various techniques of Management Development.

Answered: 1 week ago