Total manufacturing overhead cost

timer Asked: Jun 11th, 2014

Question description

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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