Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z....
70.2K
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 $745,200 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 PoolActivity MeasureEstimated Overhead CostExpected ActivityMachiningMachine-hours$242,40012,000MHsMachine setupsNumber of setups$114,400220setupsProduct designNumber of products$86,0002productsGeneral factoryDirect labor-hours$302,40014,400DLHs
Activity MeasureProduct YProduct ZMachine-hours7,2004,800Number of setups40180Number of products11Direct labor-hours8,2006,200
rev: 03_28_2018_QC_CS-122670
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.)
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!
