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Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Required information The Foundational 15
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?
Required information The Foundational 15 [LO7-1, LO7-3, LO7-4] [The following information applies to the questions displayed below. 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 $729,000 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: Estimated Overhead Cost Expected Activity Activity Cost Poo.l Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products 77,000 Direct labor-hours 364,500 14,400 DLHs 231,600 12,000 MHs $55,900 130 setups 2 products Activity Measure Product YProduct 2 Machine-hours Number of setups Number of products Direct labor-hours 6,300 40 5,700 90 9,000 5, 400Step by Step Solution
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