Hickory Company manufactures two products�13,000 units of Product Y

.pdf
Hickory Company manufactures two products13,000 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 $684,000 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 $ 235,200 12,000 MHs Machine setups Number of setups $ 73,600 160 setups Product design Number of products $ 80,000 2 products General factory Direct labor-hours $ 295,200 14,400 DLHs Activity Measure Product Y Product Z Machine-hours 6,600 5,400 Number of setups 40 120 Number of products 1 1 Direct labor-hours 7,600 6,800 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place.
Page1of 1
Uploaded by CaptainFlagWildcat28 on coursehero.com