Required information Skip to question [The following information applies to the questions displayed...

60.1K

Verified Solution

Question

Accounting

Required information

Skip to question

[The following information applies to the questions displayed below.]

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 $829,500 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 $ 246,000 12,000 MHs
Machine setups Number of setups $ 137,500 250 setups
Product design Number of products $ 89,000 2 products
General factory Direct labor-hours $ 357,000 14,400 DLHs

Activity Measure Product Y Product Z
Machine-hours 7,500 4,500
Number of setups 40 210
Number of products 1 1
Direct labor-hours 8,500 5,900

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.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students