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limemouse200Lv1
28 Sep 2019
Hickory Company manufactures two productsâ15,000 units ofProduct Y and 7,000 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: (The totalestimated overhead cost may not agree with the sum of allocatedoverhead costs to each product.)
Activity CostPool ActivityMeasure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Productiondesign Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs
ActivityMeasure Product Y Product Z Machining 7,700 3,300 Number ofsetups 60 210 Number ofproducts 1 1 Directlabor-hours 8,700 1,300
Required: Using the ABC system, how muchtotal manufacturing overhead cost would be assigned to ProductY?(Round your intermediate calculations to 2 decimal placesand final answers to the nearest dollar amount.)
Total manufacturingoverhead cost $
Hickory Company manufactures two productsâ15,000 units ofProduct Y and 7,000 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: (The totalestimated overhead cost may not agree with the sum of allocatedoverhead costs to each product.) |
Activity CostPool | ActivityMeasure | Estimated Overhead Cost | Expected Activity | ||
Machining | Machine-hours | $ | 227,700 | 11,000 | MHs |
Machine setups | Number of setups | $ | 153,900 | 270 | setups |
Productiondesign | Number of products | $ | 91,000 | 2 | products |
General factory | Direct labor-hours | $ | 257,000 | 10,000 | DLHs |
ActivityMeasure | Product Y | Product Z |
Machining | 7,700 | 3,300 |
Number ofsetups | 60 | 210 |
Number ofproducts | 1 | 1 |
Directlabor-hours | 8,700 | 1,300 |
Required: |
Using the ABC system, how muchtotal manufacturing overhead cost would be assigned to ProductY?(Round your intermediate calculations to 2 decimal placesand final answers to the nearest dollar amount.) |
Total manufacturingoverhead cost | $ |
Trinidad TremblayLv2
28 Sep 2019