Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours.

The manufactures two products14,000 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 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 PoolActivity MeasureEstimated Overhead CostExpected

ActivityMachiningMachine-hours$203,00010,000MHsMachine setupsNumber of setups$121,900230setupsProduction designNumber of products$87,0002productsGeneral factoryDirect labor-hours$379,50015,000DLHs

Activity MeasureProduct YProduct ZMachining8,3001,700Number of setups50180Number of products11Direct labor-hours9,5005,500

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?(Round your intermediate calculations and final answers to 2 decimal places.)

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

Step: 3

blur-text-image

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

Managerial Accounting

Authors: James Jiambalvo

4th edition

9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797

Students also viewed these Accounting questions

Question

4. Review periodically.

Answered: 1 week ago