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Homework Saved Help Save& Exit Subrn Check my worl The following information applies to the questions displayed below. Hickory Company manufactures two products-15,000 units of Product Y and 7,000 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 $664,200 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 Estimated overhead tivity Cost Pool Expected Activity Activity Measure Machine-hours Cost $221,100 11,000 MHs Machining Machine setups Product design General factory f setups 107,100 210 setups Number of products 85,000 Direct labor-hours 251,000 13,200 DLHs 2 products ctivity Measure Product YProduct z Machine-hours Number of setups Number of products Direct labor-hours 7,100 60 3,900 150 8,100 5,100 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate Iculations to 2 decimal places.) otal manufacturing ove K Prev 9 10 115of 15 Next>

Explanation / Answer

Answer is $ 431620

Notes:

Calculation of activity rate Activity cost pool Cost ($) (A) Activity Base for Allocation No of cost driver (B) Rate (A/B) Machining 221100 Machine hours 11000 20.1 Machine set up 107100 number of set ups 210 510 Product design 85000 number of products 2 42500 General Factory 251000 Direct labour Hours 13200 19.02 Cost allocated to Y rate (A) activity (B) cost allocated (A*B) Machine hours 20.10 7100 142710 number of set ups 510.00 60 30600 number of products 42500.00 1 42500 Direct labour Hours 19.02 8100 215810 Total 431620

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