Maurice Tutor

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Category > Accounting Posted 29 Jul 2017 My Price 11.00

Hickory Company

Hickory Company manufactures two productsAc€??14,000 units of Product Y and 6,000 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 $ 200,000    10,000 MHs
  Machine setups Number of setups $ 100,000    200 setups
  Production design Number of products $ 84,000    2 products
  General factory Direct labor-hours $ 300,000    12,000 DLHs
 

  

Activity Measure Product Y Product Z
  Machine-hours 7,000 3,000
  Number of setups 50 150
  Number of products 1 1
  Direct labor-hours 8,000 4,000
 

rev: 10_24_2014_QC_57437

1.

value:
0.66 points

Required:
What is the companyAc€?cs plantwide overhead rate?
 

ask your instructor a questioncheck my workreferencesebook & resources

2.

value:
0.66 points

Required:

Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?
 

ask your instructor a questioncheck my workreferencesebook & resources

3.

value:
0.66 points

Required:
What is the activity rate for the Machining activity cost pool?
 

ask your instructor a questioncheck my workreferencesebook & resources

4.

value:
0.66 points

Required:
What is the activity rate for the Machine Setups activity cost pool?
 

ask your instructor a questioncheck my workreferencesebook & resources

5.

value:
0.66 points

Required:
What is the activity rate for the Product Design activity cost pool?
 

ask your instructor a questioncheck my workreferencesebook & resources

6.

value:
0.66 points

Required:
What is the activity rate for the General Factory activity cost pool?
 

ask your instructor a questioncheck my workreferencesebook & resources

7.

value:
0.66 points

Required:
Which of the four activities is a batch-level activity?
  
  General factory activity
  Machine setups activity
  Product design activity
  Machining activity

ask your instructor a questioncheck my workreferencesebook & resources

8.

value:
0.66 points

Required:
Which of the four activities is a product-level activity?
  
  Machining activity
  Product design activity
  General factory activity
  Machine setups activity

ask your instructor a questioncheck my workreferencesebook & resources

9.

value:
0.66 points

Required:

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediate calculations.)
 

rev: 10_24_2014_QC_57437

ask your instructor a questioncheck my workreferencesebook & resources

10.

value:
0.66 points

Required:

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations.)
 

rev: 10_24_2014_QC_57437

ask your instructor a questioncheck my workreferencesebook & resources

11.

value:
0.66 points

Required:
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3))
 

ask your instructor a questioncheck my workreferencesebook & resources

12.

value:
0.66 points

Required:
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?
 

ask your instructor a questioncheck my workreferencesebook & resources

13.

value:
0.66 points

Required:
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?
 

ask your instructor a questioncheck my workreferencesebook & resources

14.

value:
0.66 points

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

ask your instructor a questioncheck my workreferencesebook & resources

15.

value:
0.76 points

Required:
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answer to 1 decimal place. (i.e. .1234 should be entered as 12.3))

 

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Jul 2017 03:07 PM My Price 11.00

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