Hickory Company manufactures two products—13,000
units of Product Y and 5,000 units of Product Z. The company uses a
plantwide...
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: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.)
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity |
| Machining | Machine-hours | $ | 235,200 | 12,000 | MHs |
| Machine setups | Number of setups | $ | 73,600 | 160 | setups |
| Production design | Number of products | $ | 80,000 | 2 | products |
| General factory | Direct labor-hours | $ | 295,200 | 12,000 | DLHs |
|
| Activity Measure | Product Y | Product Z |
| Machining | 6,600 | 5,400 |
| Number of setups | 40 | 120 |
| Number of products | 1 | 1 |
| Direct labor-hours | 7,600 | 4,400 |
|
| Required: |
| Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
| Total manufacturing overhead cost | $ |
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