Question: Using the abc system, how much total manufacturing overhead cost would be assigned to product Y? (Info in picture) Hickory Company manufactures two products-15,000 units
Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z 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 (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.) Estimated Overhead Activity Cost Pool Machining Cost Expected Activity $224,40011,000 MHs $129,600 Activity Measure Machine-hours 240 setups Machine setups Production design General factory Number of setups Number of products Direct labor-hours 88,000 $254,00010,000 DLHs Activity Measure Machining Number of setups Direct labor-hours Product Y Product Z 7,400 3,600 180 60 ucts 8400 1,600 1,600
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