BU [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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $696,000 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 $ 224,400 $ 129,600 $ 88,000 $ 254,000 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 Product Z 7,400 60 1 8,400 3,600 180 1 4,800 What is the activity rate for the Machining activity cost pool? Expected Activity 11,000 MHS 248 setups 2 products 13,200 DLHS
BU [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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $696,000 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 $ 224,400 $ 129,600 $ 88,000 $ 254,000 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 Product Z 7,400 60 1 8,400 3,600 180 1 4,800 What is the activity rate for the Machining activity cost pool? Expected Activity 11,000 MHS 248 setups 2 products 13,200 DLHS
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[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 labor-hours. It is considering implementing an activity-based costing (ABC)
system that allocates all $696,000 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
$ 224,400
$ 129,600
$ 88,000
$ 254,000
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.
Activity rate
Product Y
7,400
60
per MH
1
8,400
Product Z
3,600
180
3. What is the activity rate for the Machining activity cost pool?
Note: Round your answer to 2 decimal places.
1
4,800
Expected Activity
11,000 MHS
240 setups
2 products
13,200 DLHS](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0255a0c6-2c67-4045-b99f-f9990a4a21e2%2Facd3e4ef-4e1e-40b9-a049-0e838a5259b6%2Fpdb2oe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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 labor-hours. It is considering implementing an activity-based costing (ABC)
system that allocates all $696,000 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
$ 224,400
$ 129,600
$ 88,000
$ 254,000
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.
Activity rate
Product Y
7,400
60
per MH
1
8,400
Product Z
3,600
180
3. What is the activity rate for the Machining activity cost pool?
Note: Round your answer to 2 decimal places.
1
4,800
Expected Activity
11,000 MHS
240 setups
2 products
13,200 DLHS
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