Hickory Company manufactures two productsâ14,000 units ofProduct Y and 6,000 units of Product Z. The company uses aplantwide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) systemthat allocates all of its manufacturing overhead to four costpools. The following additional information is available for thecompany as a whole and for Products Y and Z:
Activity CostPool ActivityMeasure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 203,000 10,000 MHs Machine setups Number of setups $ 121,900 230 setups Productiondesign Number of products $ 87,000 2 products General factory Direct labor-hours $ 379,500 12,000 DLHs
ActivityMeasure Product Y Product Z Machine-hours 7,300 2,700 Number ofsetups 50 180 Number ofproducts 1 1 Directlabor-hours 9,500 2,500
11. Using the plantwide overhead rate, what percentage of the totaloverhead 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. 0.1234should be entered as 12.34).)
12. Using the ABC system, what percentage of the Machining costsis assigned to Product Y and Product Z? (Round yourintermediate calculations to 2 decimal places. Round your"Percentage" answers to 2 decimal places. (i.e. 0.1234 should beentered as 12.34).)
13. Using the ABC system, what percentage of Machine Setups costis assigned to Product Y and Product Z? (Round yourintermediate calculations to 2 decimal places. Round your"Percentage" answers to 2 decimal places. (i.e. 0.1234 should beentered as 12.34).)
14. Using the ABC system, what percentage of the Product Designcost is assigned to Product Y and Product Z? (Round youranswers to 2 decimal places.)
15. Using the ABC system, what percentage of the General Factorycost is assigned to Product Y and Product Z? (Round yourintermediate calculations to 2 decimal places. Round your"Percentage" answers to 2 decimal places. (i.e. 0.1234 should beentered as 12.34).)
Hickory Company manufactures two productsâ14,000 units ofProduct Y and 6,000 units of Product Z. The company uses aplantwide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) systemthat allocates all of its manufacturing overhead to four costpools. The following additional information is available for thecompany as a whole and for Products Y and Z: |
Activity CostPool | ActivityMeasure | Estimated Overhead Cost | Expected Activity | ||
Machining | Machine-hours | $ | 203,000 | 10,000 | MHs |
Machine setups | Number of setups | $ | 121,900 | 230 | setups |
Productiondesign | Number of products | $ | 87,000 | 2 | products |
General factory | Direct labor-hours | $ | 379,500 | 12,000 | DLHs |
ActivityMeasure | Product Y | Product Z |
Machine-hours | 7,300 | 2,700 |
Number ofsetups | 50 | 180 |
Number ofproducts | 1 | 1 |
Directlabor-hours | 9,500 | 2,500 |
12. Using the ABC system, what percentage of the Machining costsis assigned to Product Y and Product Z? (Round yourintermediate calculations to 2 decimal places. Round your"Percentage" answers to 2 decimal places. (i.e. 0.1234 should beentered as 12.34).) 13. Using the ABC system, what percentage of Machine Setups costis assigned to Product Y and Product Z? (Round yourintermediate calculations to 2 decimal places. Round your"Percentage" answers to 2 decimal places. (i.e. 0.1234 should beentered as 12.34).) 14. Using the ABC system, what percentage of the Product Designcost is assigned to Product Y and Product Z? (Round youranswers to 2 decimal places.) 15. Using the ABC system, what percentage of the General Factorycost is assigned to Product Y and Product Z? (Round yourintermediate calculations to 2 decimal places. Round your"Percentage" answers to 2 decimal places. (i.e. 0.1234 should beentered as 12.34).) |