Manufacturing overhead cost

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Reference no: EM13949137

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	$	235,200	12,000	MHs
Machine setups	Number of setups	$	73,600	160	setups
Production 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

1. What is the company's plant wide overhead rate?

2. Using the plant wide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

3. What is the activity rate for the Machining activity cost pool?

4. What is the activity rate for the Machining activity cost pool?

5. What is the activity rate for the Product Design activity cost pool?

Reference no: EM13949137

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