Percent of Total Overhead Cost allocated between 2 products.

timer Asked: Mar 10th, 2016

Question description

Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

Activity Cost PoolActivity MeasureEstimated Overhead CostExpected Activity
 Machining Machine-hours$242,400  12,000 MHs
 Machine setups Number of setups$114,400 220 setups
 Production design Number of products$86,000 2 products
 General factory Direct labor-hours$302,400  14,400 DLHs
Activity MeasureProduct YProduct Z
 Machine-hours7,200  4,800  
 Number of setups40  180  
 Number of products1  1  
 Direct labor-hours8,200  6,200  

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