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Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The...

Hickory Company manufactures two products—13,000 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 $630,000 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 $ 228,000 12,000 MHs
Machine setups Number of setups $ 40,000 100 setups
Product design Number of products $ 74,000 2 products
General factory Direct labor-hours $ 288,000 14,400 DLHs
Activity Measure Product Y Product Z
Machine-hours 10,000 2,000
Number of setups 40 60
Number of products 1 1
Direct labor-hours 7,000 7,400

Foundational 7-5

5. What is the activity rate for the Product Design activity cost pool?

  

6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

  

7. Which of the four activities is a batch-level activity?

Machine setups activity

Machining activity

Product design activity

General factory activity

  

8. Which of the four activities is a product-level activity?

General factory activity

Product design activity

Machine setups activity

Machining activity

  

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate calculations to 2 decimal places.)

  

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

  

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)

12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)

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.)

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

  

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your

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