Hickory Company manufactures two products—13,000 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 $813,600 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 Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine hours $246,000 12,000 MHs
Machine set-ups Number of set-ups $137,500 250 set-ups
Production Design Number of Products 89,000 2 products
General Factory Direct labor-hours 357,000 14,000 DLHs
Activity Measure Product Y Product Z
Machine Hours 7,500 4,500
Number of set-ups 40 210
Number of products 1 1
Direct labor-hours 8,500 5,500
a. What is the company's plant-wide overhead rate? (Round your answer to 2 decimal places.)
b. Using the plant-wide 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.)
c. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
d. What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)
e. What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)
f. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
g. Which of the four activities is a batch-level activity?
h. Which of the four activities is a product-level activity?
i. 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.)
j. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)
k. Using the plant-wide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.)
l. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
m. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
n. 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.)
o. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
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Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. Th...
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