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 $674,000 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: Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Foundational 7-13 (Algo) Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y 6,700 Machine setups cost 60 1 7,700 Estimated Overhead Cost $216,700 $ 79,900 $ 81,000 $ 296,400 Product Y 35.36 % Product Z 4,300 110 5,500 X Answer is complete but not entirely correct. Product Z Expected Activity 11,000 MHs 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. 64.64 % 170 setups 2 products 13,200 DLHs

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 $674,000 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: Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Foundational 7-13 (Algo) Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y 6,700 Machine setups cost 60 1 7,700 Estimated Overhead Cost $216,700 $ 79,900 $ 81,000 $ 296,400 Product Y 35.36 % Product Z 4,300 110 5,500 X Answer is complete but not entirely correct. Product Z Expected Activity 11,000 MHs 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. 64.64 % 170 setups 2 products 13,200 DLHs

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Description: !Required informationThe Foundational 15 (Algo) [LO7-1, L07-3, LO07-4][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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Required information Greenwood 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 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 Production design General factory Activity Measure Machining Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 227,700 $ 153,908 Product Y Product Z 8,700 60 1 8,700 2,300 210 1 1,300 Expected Activity 11,000 MHS 270 setups $ 91,000. $ 257,000 2 products 10,000 DLHS 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2…
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Shine Ltd manufactures two products, Exe and Zed. Currently, overheads are apportioned using a traditional absorption costing basis. You are the cost accountant and from the class discussion on activity based costing (ABC), you are considering its implementation in your company for the purposes of charging overheads to production. The following information has been provided: Type of cost Amount Current basis Volume related costs Sh. 600,000 Machine hours Purchasing related cost Sh.420,000 Labour hours Set-up costs Sh. 360,000 Labour hours Extracts from the standard costs show the following: EXE ZED Labour hours per unit 4 2 Machine hours per unit 2 2 Budgeted production next year 20,000 10,000 Number of purchase orders per annum 150 60 Number of machine set-up per annum 70 50 Required: Using ABC system, what is the overhead per unit for product Zed? Select one: A. Sh. 23.5 B.…
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Requlred Informatlon Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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 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 Production design General factory Activity Measure, Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 242,400 $ 114,400 86,000 $ 302,400 Expected Activity 12,000 MHs 220 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours, Product Y 8,200 40 Product Z 3,800 180 1. 3,800 8,200 4. What is the activity rate for the Machine Setups activity cost pool? 灣灣彩 Activity rate per setup 15 of 15 Axt > < Prev 4 5 9. 92 F AQI…
Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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 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 Production design General factory Activity Measure Machining DESKTOP- Windows Number of setups Number of products Direct labor-hours General factory cost Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y +1 (252) 484-2153 Oh nun Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 % 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.) Product Z (@ 2 0…
Franklin Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Cost Cost driver Req A and B Unit Level $ 62,400 2,400 labor hours Req C Allocated overhead Direct cost Total cost per unit Desired profit Sales price Production of 710 sets of cutting shears, one of the company's 20 products, took 170 labor hours and 6 setups and consumed 15 percent of the product-sustaining activities. Complete this question by entering your answers in the tabs below. Required a. Had the company used labor hours as a companywide allocation base, how much overhead would it have allocated to the cutting shears? b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using…
Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products-13,000 units of Product Y and 5,000 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 $829,500 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 Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 246,000 Expected Activity 12,000 MHS $ 89,000 $ 357,000 14,400 250 setups 2 products DLHS $ 137,500 General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 7,500 40 1 8,500 4,500 210 1 5,900 2. Using the plantwide overhead rate, how much manufacturing…
XYZ Co. manufactures three types of remote-control devices: X, Y, and Z. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $3,880,000 The following information pertains to the three product lines for next year: Y 10,000 5,000 2,000 Units to be produced 1,000 500 200 Orders to be shipped 10 15 25 Number of parts per unit 1 131 Machine hours per unit Labor hours per unit
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Precision Manufacturing Incorporated (PMI) makes two types of industrial component parts-the EX300 and the TX500. It annually produces 58,000 units of EX300 and 12,300 units of TX500. The company's conventional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: Direct materials. Direct labor Activity Cost Pool (and Activity Measure) Machining (machine-hours) EX300 $364,325 $ 118,000 The company is considering implementing an activity-based costing system that distributes all of its manufacturing overhead to four activities as shown below: Setups (setup hours). Product-level (number of products) * General factory (direct labor dollars). Total manufacturing overhead cost Show Transcribed Text TX500 $ 160,550 $ 41,500 Complete this question by entering your answers in the tabs below. Activity Cost Pool (and Activity…