[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 labour-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: Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Manufacturing overhead allocated Product Y 6,400 60 1 7,400 Estimated Overhead Cost $213,400 $ 61,600 $ 78,000 $244,000 Product Y Product Z 4,600 80 1 5,800 Expected Activity 11,000 MH Product Z 140 setups Required: Using the plantwide 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.) 2 products 13,200 DLHS
[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 labour-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: Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Manufacturing overhead allocated Product Y 6,400 60 1 7,400 Estimated Overhead Cost $213,400 $ 61,600 $ 78,000 $244,000 Product Y Product Z 4,600 80 1 5,800 Expected Activity 11,000 MH Product Z 140 setups Required: Using the plantwide 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.) 2 products 13,200 DLHS
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 7E: The management of Nova Industries Inc. manufactures gasoline and diesel engines through two...
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