a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $791,400 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 Machining Machine setups Product design General factory Activity Measure Machine-hours. Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products. Direct labor-hours. Product Y 7,300 50 1 9,500 Estimated Overhead Product Z 2,700 180 1 2,500 Cost $ 203,000 $ 121,900 $ 87,000 $ 379,500 Expected Activity 10,000 MHS 230 setups 2 products 12,000 DLHS 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Note: Round all intermediate calculations to 2 decimal places

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Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.