Hickory Company manufactures two products15,000 units of Product Y and 7,000 units of Product Z....
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Accounting
Hickory Company manufactures two products15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-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 Measure
Estimated Overhead Cost
Expected Activity
Machining
Machine-hours
$
210,100
11,000
MH
Machine setups
Number of setups
$
45,100
110
setups
Product design
Number of products
$
75,000
2
products
General factory
Direct labour-hours
$
241,000
13,200
DLHs
Activity Measure
Product Y
Product Z
Machine-hours
6,100
4,900
Number of setups
50
60
Number of products
1
1
Direct labour-hours
7,100
6,100
Required: What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.) Required: Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z ? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Required: What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Required: What is the activity rate for the Machine Setups activity cost pool? Required: What is the activity rate for the Product Design activity cost pool? Required: What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Required: Which of the four activities is a batch-level activity? Machine setups activity Machining activity General factory activity Product design activity Required: Which of the four activities is a product-level activity? Machine setups activity General factory activity Product design activity Machining activity Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y ? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.) Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.) Required: Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z ? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).) Required: Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z ? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34 ).) Required: Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34 ).) Required: Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) Required: Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z ? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)
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