Activity rate for product design activity cost pool

Assignment Help Accounting Basics
Reference no: EM131016339

Hickory Company manufactures two products-13,000 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 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 $ 242,400 12,000 MHs Machine setups Number of setups $ 114,400 220 setups Production design Number of products $ 86,000 2 products General factory Direct labor-hours $ 302,400 12,000 DLHs Activity Measure Product Y Product Z Machining 7,200 4,800 Number of setups 40 180 Number of products 1 1 Direct labor-hours 8,200 3,800

Required:

What is the activity rate for the Product Design activity cost pool? Product design activity cost pool $ per product

Reference no: EM131016339

Questions Cloud

Describe the economy and systems of government : Discuss the ways in which physical geography, including climate, influenced how the local Indian nations adapted to their natural environment (e.g., how they obtained food, clothing, tools).
How issues of diversity have influenced social change : Analyze how issues of diversity have influenced social change. In other words, how have problems associated with diversity necessitated or encouraged some sort of change in society
How each of these five principles might impact you : Do you feel that these Common Core Standards are an improvement to our educational system? Why or why not? Provide evidence to support your response.
Discuss the persistent societal conflicts in society : In view of this statement discuss the persistent societal conflicts in society, which often result from reactions to social, economic and cultural differences in urban areas
Activity rate for product design activity cost pool : What is the activity rate for the Product Design activity cost pool? Product design activity cost pool $ per product
How does pr organisational role compromise : How does PR's organisational role compromise or facilitate a positive contribution to society
Predetermined overhead rates : What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?
Calculate the average of the values in the integer array : Calculate the average of the values in the integer array, multiply that average by the weight, and return the result - The method calcWeightedAvg should return a double and take two parameters
Do you see evidence of slow fahion : Do you see evidence of "Slow fahion" continuing since the publication of this artical 8 years a go? Support your opinion with concrete examples. Justify your position

Reviews

Write a Review

Accounting Basics Questions & Answers

  Who are the stakeholders in this situation

Since cash is the most important asset in a firm, success of a firm can be directly traced to its cash management. Though reliance on cash flows to the exclusion of accrual accounting is discouraged, comparing cash from operations to net income ca..

  How should vivian and melvin record these transactions

As of December 31, year 2, Melvin still has not transferred title to the building, although it received title to the boat. How should Vivian and Melvin record these transactions?

  Why do we want to use comparative statements for financial

why do we want to use comparative statements for financial analysis rather than statements for a single date or period?

  Change to the equity method

On January 1, 2009, Dermot Company purchased 15% of the voting common stock of Horne Corp. On January 1, 2011, Dermot purchased 28% of Horne's voting common stock. If Dermot achieves significant influence with this new investment, how must Dermot ..

  Assume that the transfer qualifies as a sale and the

ayour company is in need of quick cash to afford a project opportunity so the firm decides to factor 100000 of its

  Seller of the receivables

A company regularly sells its receivables to a factor who assesses a 2% service charge on the amount of receivables purchased. Which of the following statements is true for the seller of the receivables?

  Partnership income taxation

What is the amount of income from the partnership that Diamond Co. must report for its tax year ending June 30, 2010? What is the amount of income from the partnership that Bill must report for her tax year ending December 31, 2010?

  Application of the cost principle

Explain the application of the cost principle in determining the acquisition cost of plant assets.

  Company recorded its ending inventory

At the end of Year 1, Manny Company recorded its ending inventory at $350,000 based on a physical count.

  Determining attractive investments

Management is unsure about how much additional ticket revenue the new ride would generate particularly since customers pay a flat fee when they enter the park that entitles them to unlimited rides. hopefully, the presence of the ride would attract..

  Determine the value of firms ending wip

Supplemental information shows raw materials purchases of $60,000, raw materials used in production of $90,000, direct labor of $107,000, and manufacturing overhead of $113,000. You also know that the company's ending work in process was 40% of it..

  Managers use management by exception for control purposes

1managers use management by exception for control purposes. describe the concept of management by exception. explane

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd