Question
In: Accounting
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 $813,600 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 | $ | 249,600 | 12,000 | MHs |
| Machine setups | Number of setups | $ | 162,400 | 280 | setups |
| Product design | Number of products | $ | 92,000 | 2 | products |
| General factory | Direct labor-hours | $ | 309,600 | 14,400 | DLHs |
| Activity Measure | Product Y | Product Z |
| Machine-hours | 7,800 | 4,200 |
| Number of setups | 40 | 240 |
| Number of products | 1 | 1 |
| Direct labor-hours | 8,800 | 5,600 |
8. Which of the four activities is a product-level activity?
Product design activity
Machine setups activity
General factory 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 "Percentage" answers to 2 decimal place.)
Solutions
ekkarill92 answered 1 month agoRelated Solutions
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 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 $
242,400 12,000 MHs...
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 $813,600 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
$
249,600
12,000...
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...
39-42 Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z....
39-42
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 $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...
35-38 Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z....
35-38
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 $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...
Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company...
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 $788,400 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
$
238,800
12,000
MHs...
Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The...
Greenwood 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 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
$
231,600
12,000
MHs...
Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The...
Greenwood 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 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
$
231,600
12,000
MHs...
Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The...
Greenwood 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 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
$
249,600 ...
Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The...
Greenwood 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 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
$
231,600
12,000
MHs...
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