iPad 12:54 PMM Questions 5-6 (of 24) Save & Exit Submit Time remaining: 1:25:07
ID: 341395 • Letter: I
Question
iPad 12:54 PMM Questions 5-6 (of 24) Save & Exit Submit Time remaining: 1:25:07 The following information applies to the questions displayed below. Hickory Company manufactures two products-14,000 units of Product Y and 6,000 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 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: Overhead Cost 195,000 67500 79,000 245,000 Expected Activity 0,000 MHs Activity Cost Pool Activity Measure 150 setups Machine setups Production design General factory Number of setups Number of products Direct labor-hours 2 products 12,000 DLHs Product Y 6,500 Activity Measure Product Z 3,500 Machine-hours Number of setups Number of products Direct labor-hours 50 100 7,500 4,500 5 Required informationExplanation / Answer
The total manufacturing overhead is
126750( 195000/10000*6500)
22500 (67500/150*50)
39500 (79000/2)
153125 (245000/12000*7500)
Total = 341875
6)
19.50 (195000/10000)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.