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Help Save&Exit; Check my work Hickory Company manufactures two products-15,000 u

ID: 2436176 • Letter: H

Question

Help Save&Exit; Check my work 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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $664,200 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 Estimated Overhead Cost Expected tiv Machining Machine setups Product design General factory Activit 221,100 11,000 MHs vity Cost Pool Activity Measure Machine-hours Number of setups 107,100 210 setups Number of products 85,000 Direct labor-hours 251,000 13,200 DLHs 2 products Activity Machine-hours Produ YProduct Z 7,100 60 3,900 150 Number of setups Number of products Direct labor-hours8,100 5,100 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate calculations to 2 decimal places.) Total ng overhead co

Explanation / Answer

Working:

Total Overhead assigned to Product Y $ 3,69,833