4 Required information (The following information applies to the questions displayed below] 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 labour-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: Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7,100 60 1 8,100 Estimated Overhead Cost $221,100 $107,100 $ 85,000 $251,000 Product Z 3,900 150 1 5,100 Expected Activity 11,000 M 210 setups 2 products 13,200 DLHS Required: What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity per DLH
4 Required information (The following information applies to the questions displayed below] 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 labour-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: Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7,100 60 1 8,100 Estimated Overhead Cost $221,100 $107,100 $ 85,000 $251,000 Product Z 3,900 150 1 5,100 Expected Activity 11,000 M 210 setups 2 products 13,200 DLHS Required: What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity per DLH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
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 labour-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:
Machining
Machine setups
Product design
General factory
Activity Measure
Machine-hours
Number of setup
Number of products
Direct labour-hours
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labour-hours
Activity rate
Product Y
7,100
60
1
8,100
Estinated
Overhead Cost
$221,100
$107,100
$ 85,000
$251,000
Product Z
3,900
150
1
5,100
Expected Activity
11,000 MH
210 setups
2 products
13,200 DLHS
Required:
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
per DLH](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5c3e332c-b8c2-4ed0-b345-1626c419d852%2F9868a7bb-1df2-4718-9049-5c1370842910%2Ff08lsh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4
Required information
[The following information applies to the questions displayed below.]
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 labour-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:
Machining
Machine setups
Product design
General factory
Activity Measure
Machine-hours
Number of setup
Number of products
Direct labour-hours
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labour-hours
Activity rate
Product Y
7,100
60
1
8,100
Estinated
Overhead Cost
$221,100
$107,100
$ 85,000
$251,000
Product Z
3,900
150
1
5,100
Expected Activity
11,000 MH
210 setups
2 products
13,200 DLHS
Required:
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
per DLH
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