What percentage of the product design cost is assigned

Assignment Help Managerial Accounting
Reference no: EM132581006

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 $745,200 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

Product design                Number of products               $86,000                  2 products

General factory             Direct labor-hours                    $302,400                    14,400 DLHs

Activity Measure         Product Y             Product Z

Machine-hours               7,200                 4,800

Number of setups             40                     180

Number of products              1                      1

Direct labor-hours                 8,200             6,200

Question 1: Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

Reference no: EM132581006

Questions Cloud

Management-organization and technology components : Looking at an information system, what are the management, organization, and technology components?
How to determine the fixed factory overhead volume variance : How to Determine the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance.
What percentage of the general factory cost is assigned : What percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)
Performance by understanding varying theories of motivation : Managers can improve employee performance by understanding varying theories of motivation and how they can be put into action for improvement.
What percentage of the product design cost is assigned : Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
What sorts of values would the christian worldview : What sorts of values and considerations would the Christian worldview focus on in deliberating about whether or not George should opt for euthanasia?
Criminological theory and practical reflection : Identify two criminological theories from your textbook that you find most applicable for reasons why people commit crime today.
What percentage of machine setups cost is assigned : What percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)
Quasi-contract as opposed to actual contract : Why does the court see this case as involving a quasi-contract as opposed to an actual contract?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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