Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Hickory Company manufactures two products13,000 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: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.) Estimated Overhead Activity Cost Pool Activity Measure Cost Expected Activity Machining Machine-hours 12,000 MHS 162,400 Machine setups Number of setups $ 280 setups Production design Number of products $ 92,000 2 products General factory Direct labor-hours $309,600 12,000 DLHS $249,600 Activity Measure Machining Number of setups Number of products Direct labor-hours Product Product Y Z 7,800 4,200 40 240 1 1 8,800 3,200 Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing overhead cost
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
