[ The following information applies to the questions displayed below. ] Hickory Company manufactures two products
Question:
The following information applies to the questions displayed below.
Hickory Company manufactures two products units of Product Y and units of Product Z The company uses a plantwide overhead rate based on direct laborhours. It is considering implementing an activitybased 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 Machinehours $ MHs
Machine setups Number of setups $ setups
Product design Number of products $ products
General factory Direct laborhours $ DLHs
Activity Measure Product Y Product Z
Machinehours
Number of setups
Number of products
Direct laborhours
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y
Note: Round all intermediate calculations to decimal places.
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old