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The Foundational 15 (Static) (LO7-1, L07-3, L07-4) [The following information applies to the questions displayed below.) Hickory Company manufactures two products-14,000 units of Product Y
The Foundational 15 (Static) (LO7-1, L07-3, L07-4) [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: Expected Activity 10,000 MA 200 setup 2 products 12.000 DLR Estimated Activity cost Pool Activity Measure Overhead Cost Machining Machine-hours $ 200,000 Machine setup Number of setup $ 100,000 Product design Number of products $ 84,000 General factory Direct labor-hours $ 300,000 Activity Measure Product Y Product 2 Machine-hours 7,000 3,000 Number of setup 50 150 Number of products 1 1 Direct labor-hours 4.000 8.000 Foundational 7-6 (Static) 6. What is the activity rate for the General Factory activity cost pool? Activity rate per DLH 9. Foundational 7-9 (Static) 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Total manufacturing overhead cost Foundational 7-10 (Static) 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to product Z? Total manufacturing overhead cost 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
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