70.2K

Verified Solution

Link Copied!

Hickory Company manufactures two products15,000 units of Product Y and 7,000 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 Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine Hours $224,400 11,000 MHs Machine Setups # of Setups $129,600 240 Setups Production Design # of Productions $88,000 2 Products General Factory Direct Labor Hours $254,000 13,200 DLHs Activity Measure Product Y Product Z Machine-Hours 7,400 3,600 # of Setups 60 180 # of Products 1 1 Direct Labor Hours 8,400 4,800 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).) Product Y Product Z Manufacturing Overhead % % 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).) Product Y Product Z Machining Cost % % 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).) Product Y Product Z Machine Setups Cost % % 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).) Product Y Product Z General Factory Cost % %

Answer & Explanation Solved by verified expert

See Answer