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 $788,400 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
Machining
Machine-hours
Machine setups
Number of setups
Product design
Number of products
General factory
Direct labor-hours
Estimated Overhead
Cost
$ 238,800
$ 93,100
$ 83,000
$ 373,500
Expected Activity
12,000 MHs
190 setups
2 products
14,400 DLHs
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Product Y
6,900
40
1
7,900
Product Z
5,100
150
1
6,500
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.
Product Y
Product Z
Machine setups cost
%
%
14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
Product Y
Product Z
Product design cost
%
%
15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?
Note: Round intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal place.
Product Y
Product Z
General factory cost
%
%
