Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The...
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Hickory Company manufactures two products-15,000 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 $664,200 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 Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Product Y Product Z 7,100 3,900 60 150 1 1 8,100 5,100 Cost $ 221,100 $ 107,100 $ 85,000 $ 251,000 6. What is the activity rate for the General Factory activity cost pool? Note: Round your answer to 2 decimal places. Expected Activity 11,000 MHS 210 setups 2 products 13,200 DLHS 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Note: Round all intermediate calculations to 2 decimal places. Total manufacturing overhead cost 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Total manufacturing overhead cost Hickory Company manufactures two products-15,000 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 $664,200 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 Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Product Y Product Z 7,100 3,900 60 150 1 1 8,100 5,100 Cost $ 221,100 $ 107,100 $ 85,000 $ 251,000 6. What is the activity rate for the General Factory activity cost pool? Note: Round your answer to 2 decimal places. Expected Activity 11,000 MHS 210 setups 2 products 13,200 DLHS 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Note: Round all intermediate calculations to 2 decimal places. Total manufacturing overhead cost 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Total manufacturing overhead cost
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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