Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z....
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Accounting
Hickory Company manufactures two products13,000 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 $813,600 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
$
249,600
12,000
MHs
Machine setups
Number of setups
$
162,400
280
setups
Product design
Number of products
$
92,000
2
products
General factory
Direct labor-hours
$
309,600
14,400
DLHs
Activity Measure
Product Y
Product Z
Machine-hours
7,800
4,200
Number of setups
40
240
Number of products
1
1
Direct labor-hours
8,800
5,600
Required
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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