!Required information[The following information applies to the questions displayed below.]Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company usesa 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 availablefor the company as a whole and for Products Y and Z:MachiningMachine setupsProduct designGeneral factoryActivity MeasureMachine-hoursNumber of setups.Number of productsDirect labour-hoursActivity MeasureMachine-hoursNumber of setupsNumber of productsDirect labour-hoursTotal manufacturing overhead costProduct Y6,500507,500EstimatedOverhead Cost$195,000$67,500$ 79,000$245,000Product Z3,50010014,500Expected Activity10,000 MH150 setups2 products12,000 DLHSRequired:Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediatecalculations and round your final answer to the nearest dollar amount.) Required information[The following information applies to the questions displayed below.]Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company usesa 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 availablefor the company as a whole and for Products Y and Z:MachiningMachine setupsProduct designGeneral factoryActivity MeasureMachine-hoursNumber of setupsNumber of productsDirect labour-hoursActivity MeasureMachine-hoursNumber of setupsNumber of productsDirect labour-hoursTotal manufacturing overhead costProduct Y6,5005017,500EstimatedOverhead Cost$195,000$67,500$ 79,000$245,000Product Z3,50010014,500Expected Activity10,000 MH150 setups2 products12,000 DLHSRequired:Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediatecalculations and round your final answer to the nearest dollar amount.)

Overhead is the amount of expense which is incurred on the making of the products. It includes the…

Hickory Company manufactures two products-14,000 units of Product Y and 6,000 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 Total manufacturing overhead cost Product Y 6,500 50 1 7,500 Estimated Overhead Cost $195,000 $ 67,500 $ 79,000 $245,000 Product Z 3,500 100 1 4,500 Expected Activity 10,000 MH 150 setups 2 products 12,000 DLHs Required: sing the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediat alculations and round your final answer to the nearest dollar amount.)

Hickory Company manufactures two products-14,000 units of Product Y and 6,000 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 Total manufacturing overhead cost Product Y 6,500 50 1 7,500 Estimated Overhead Cost $195,000 $ 67,500 $ 79,000 $245,000 Product Z 3,500 100 1 4,500 Expected Activity 10,000 MH 150 setups 2 products 12,000 DLHs Required: sing the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediat alculations and round your final answer to the nearest dollar amount.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Maxey & Sons manufactures two types of storage cabinets-Type A and Type B-and applies manufacturing overhead to all units at the rate of $120 per machine hour. Production information follows. Descriptions Anticipated volume (units) Direct-material cost per unit Direct-labor cost per unit Descriptions The controller, who is studying the use of activity-based costing, has determined that the firm's overhead can be identified with three activities: manufacturing setups, machine processing, and product shipping. Data on the number of setups, machine hours, and outgoing shipments, which are the activities' three respective cost drivers, follow. Setups Machine hours Outgoing shipments Type A 140 48,000 200 Required 1 Required 2 Required 3 Type A 24,000 $ 28 33 The firm's total overhead of $13,860,000 is subdivided as follows: manufacturing setups, $3,024,000; machine processing, $8,316,000; and product shipping, $2,520,000. Required: 1. Compute the unit manufacturing cost of Type A and Type…
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