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iew History Bookmarks Window Help nal 15 Homework Saved Help Save & Exit Check m Hickory Company manufactures two products-15,000 units of Product Y and 7000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hour ABC) system that allocates all $664.200 of its manufacturing overhead to four cost poo information is available for the company as a whole and for Products Y and Z: s. It is considering implementing an activity-based costing Estinated Expected Activity Cost Machining Hachine setups Product design General factory Activity Me Machine-hours Number of setups Nunber of products 85,000 Direct labor-hours 251,000 13,200 DLHs Activi 221, 100 11,000 MHs 107,100 210 setupa 2 prodocts 7,1003,900 150 Machine-hours Nunber of setups Number of products Direct labor-hours ,100 5,100 15. Using the ABC system, what percentoge of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.) General factory cost Prev 15 of 15 NextExplanation / Answer
Cost Drivers Rate
Activity
Cost Drivers
Total Activity Amount (A)
Level of Activity (B)
Activity Rate (C=A/B)
Machining
Machine Hours
$ 221,100.00
11000.00
$ 20.10
Per Machine Hour
Machine Setups
Number of Setups
$ 107,100.00
210.00
$ 510.00
Per setup
Product design
Number of Products
$ 85,000.00
2.00
$ 42,500.00
Per product
General factory
Direct labor Hours
$ 251,000.00
13200.00
$ 19.02
Per Direct Labor Hour
$ 664,200.00
Working 1 (Product Y) Overhead per unit
Product Y
Activity rate(A)
Activity Driver Incurred (B)
Overhead Assigned (C=A*B)
Machining
$ 20.10
7100
$ 142,710.00
Machine Setups
$ 510.00
60
$ 30,600.00
Product design
$ 42,500.00
1
$ 42,500.00
General factory
$ 19.02
8100
$ 154,022.73
Total Overheads
$ 369,832.73
Production
15000.00
Overhead cost per unit
$ 24.66
Working 1 (Product Z) Overhead per unit
Product Z
Activity rate(A)
Activity Driver Incurred (B)
Overhead Assigned (C=A*B)
Machining
$ 20.10
3900
$ 78,390.00
Machine Setups
$ 510.00
150
$ 76,500.00
Product design
$ 42,500.00
1
$ 42,500.00
General factory
$ 19.02
5,100
$ 96,977.27
Total Overheads
$ 294,367.27
Production
7000.00
Overhead cost per unit
$ 42.05
Overhead per unit as per ABC system
Product Y
Product Z
Total
Overheads Allocation
$ 369,832.73
55.68%
$ 294,367.27
44.32%
$ 664,200.00
100%
Final Answer
Product Y
Product Z
General Factory Cost
55.68%
44.32%
Cost Drivers Rate
Activity
Cost Drivers
Total Activity Amount (A)
Level of Activity (B)
Activity Rate (C=A/B)
Machining
Machine Hours
$ 221,100.00
11000.00
$ 20.10
Per Machine Hour
Machine Setups
Number of Setups
$ 107,100.00
210.00
$ 510.00
Per setup
Product design
Number of Products
$ 85,000.00
2.00
$ 42,500.00
Per product
General factory
Direct labor Hours
$ 251,000.00
13200.00
$ 19.02
Per Direct Labor Hour
$ 664,200.00
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