kindly solve this question Q.No.3Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units ofProduct Z. The company uses a plant wide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) system that allocates all of itsmanufacturing overhead to four cost pools. The following additional information is available forthe company as a whole and for Products Y and Z:EstimatedActivity Cost PoolActivity MeasureOverhead CostExpected ActivityMachiningMachine setupsProduct designGeneral factoryMachine-hoursNumber of setupsNumber of productsDirect labor-hours$200,000$100,000$84,000$300,00010,000 MHs200 setups2 products12,000 DLHSActivity MeasureMachine-hours.Product Y7,00050Product Z3,000150Number of setupsNumber of productsDirect labor-hours...118,0004,000Required:1. What is the company's plant wide overhead rate?2. Using the plant wide overhead rate, how much manufacturing overhead cost is allocatedtoProduct Y? How much is allocated to Product Z?3. What is the activity rate for the Machining activity cost pool?4. What is the activity rate for the Machine Setups activity cost pool?5. What is the activity rate for the Product Design activity cost pool?6. What is the activity rate for the General Factory activity cost pool?7. Which of the four activities is a batch-level activity? Why?8. Which of the four activities is a product-level activity? Why?9. Using the ABC system, how much total manufacturing overhead cost would be assigned toProduct Y?10. Using the ABC system, how much total manufacturing overhead cost would be assigned toProduct Z?11. Using the plant wide overhead rate, what percentage of the total overhead cost is allocatedtoProduct Y? What percentage is allocated to Product Z?12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y?What percentage is assigned to Product Z? Are these percentages similar to those obtained inrequirement 11? Why?13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y?What percentage is assigned to Product Z? Are these percentages similar to those obtained inrequirement 11? Why?14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y?What percentage is assigned to Product Z? Are these percentages similar to those obtained inrequirement 11? Why?15. Using the ABC system, what percentage of the General Factory cost is assigned to ProductY?What percentage is assigned to Product Z? Are these percentages similar to those obtained inrequirement 11? Why?

Plant wide overhead rate is defined as the rate which the business uses for assigning all its…

Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units Product Z. The company uses a plant wide overhead rate based on direct labor-hours. It considering implementing an activity-based costing (ABC) system that allocates all of manufacturing overhead to four cost pools. The following additional information is available f the company as a whole and for Products Y and Z: Estimated

Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units Product Z. The company uses a plant wide overhead rate based on direct labor-hours. It considering implementing an activity-based costing (ABC) system that allocates all of manufacturing overhead to four cost pools. The following additional information is available f the company as a whole and for Products Y and Z: Estimated

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 2PA: The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the...

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