(Answered) Question - hickory company manufactures two products-13000

Accounting

Question - 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 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 Activity Measure Estimated Overhead Cost Expected Activity

Machining Machine-hours $ 228,000 12,000 MHs

Machine setups Number of setups $40,000 100setups

Production design Number of products $74,000 2 products

General factory Direct labor-hours $ 288,000 14,400 DLHs

Activity Measure Product Y Product Z

Machine-hours 10,000 2,000

Number of setups 40 60

Number of products 1 1

Direct labor-hours 7,000 7,400

1. What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.)

2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and 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. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92844896
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - on january 1 revis consulting entered into a

Question - On January 1, Revis Consulting entered into a contract to to create cost reduction program for Green Financial over a six-month period. Revis will receive $60,800 from Green at the end of each month. If total ...

Assignment 1 organization forms and taxationthere are

Assignment 1: Organization Forms and Taxation There are several forms of business organizations. The Internal Revenue Code (IRC) taxes different forms in different ways. The tax implications can sometimes be important en ...

Question - accounting ninja incorporateds income statement

Question - Accounting Ninja Incorporated's Income Statement showed the following relvant data for thwe year ended December 31, 2017: Sales revenue - $207037 CPGS - $121277 Income from continuing operations - $253838 Loss ...

Question - cosos internal control - integrated framework

Question - COSO's Internal Control - Integrated Framework discusses technology general controls and application controls. What are technology general controls and application controls? How do technology general controls ...

Question - assume that on january 1 2017 elmers restaurants

Question - Assume that on January 1, 2017, Elmer's Restaurants sells a computer system to Liquidity Finance Co. for $680,000 and immediately leases the computer system back. The relevant information is as follows. 1. The ...

Question - melton corporation is preparing the comparative

Question - Melton Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2017, and May 31, 2018. The income from operations for the fiscal y ...

Question - maple mount fishery is a canning company in

Question - Maple Mount Fishery is a canning company in Astoria. The company uses a normal costing system in which factory overhead is applied on the basis of direct labor costs. Budgeted factory overhead for the year was ...

Question - family home and security inc sells super

Question - Family home and security, Inc sells super padlocks. It reported an increase in net sales from 5.0 billion in 2014 to 5.3 billion in 2015, and an increase in gross profit from 1.5 billion in 2014 to 1.7 billion ...

Question - income computation for a manufacturing firmthe

Question - Income Computation for a Manufacturing Firm The following data relate to GenMet, a U.S. based consumer goods manufacturing firm, for the fiscal year ending October 31, 2013. Reported amounts are in millions of ...

Question - robin corporation purchased 150000 previously

Question - Robin Corporation purchased 150,000 previously unissued shares of Nest Company's $10 par value common stock directly from Nest for $3,400,000. Nest's stockholder's equity immediately before the investment by R ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert