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Chapter7,Problem1TF Bookmark Showallsteps: ON

Problem

HickoryCompanymanufacturestwoproducts14,000unitsofProductYand6,000unitsof
ProductZ.Thecompanyusesaplantwideoverheadratebasedondirectlaborhours.Itis
consideringimplementinganactivitybasedcosting(ABC)systemthatallocatesallofits
manufacturingoverheadtofourcostpools.Thefollowingadditionalinformationisavailablefor
thecompanyasawholeandforProductsYandZ:

Required:

1.Whatisthecompanysplantwideoverheadrate?

2.Usingtheplantwideoverheadrate,howmuchmanufacturingoverheadcostisallocatedto
ProductY?HowmuchisallocatedtoProductZ?

3.WhatistheactivityratefortheMachiningactivitycostpool?

4.WhatistheactivityratefortheMachineSetupsactivitycostpool?

5.WhatistheactivityratefortheProductDesignactivitycostpool?

6.WhatistheactivityratefortheGeneralFactoryactivitycostpool?

7.Whichofthefouractivitiesisabatchlevelactivity?Why?

8.Whichofthefouractivitiesisaproductlevelactivity?Why?

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11/1/2016 ManagerialAccounting15thEditionTextbookSolutions|Chegg.com
ChapterB
9.UsingtheABCsystem,howmuchtotalmanufacturingoverheadcostwouldbeassignedto
Chapter1 ProductY?

Chapter1A

Chapter2 10.UsingtheABCsystem,howmuchtotalmanufacturingoverheadcostwouldbeassignedto
ProductZ?
Chapter2A

Chapter2B BOOKS STUDY TUTORS TEST PREP INTERNSHIPS COLLEGES Search

11.Usingtheplantwideoverheadrate,whatpercentageofthetotaloverheadcostisallocated
Chapter3
toProductY?WhatpercentageisallocatedtoProductZ?
Chapter3A

Chapter3B 12.UsingtheABCsystem,whatpercentageoftheMachiningcostsisassignedtoProductY?
WhatpercentageisassignedtoProductZ?Arethesepercentagessimilartothoseobtainedin
Chapter4
requirement11?Why?
Chapter4A

Chapter4B
13.UsingtheABCsystem,whatpercentageofMachineSetupscostisassignedtoProductY?
Chapter5 WhatpercentageisassignedtoProductZ?Arethesepercentagessimilartothoseobtainedin
requirement11?Why?
Chapter6

Chapter6A
14.UsingtheABCsystem,whatpercentageoftheProductDesigncostisassignedtoProduct
Chapter7 Y?WhatpercentageisassignedtoProductZ?Arethesepercentagessimilartothoseobtained
inrequirement11?Why?
1AE

1E
15.UsingtheABCsystem,whatpercentageoftheGeneralFactorycostisassignedtoProduct
1Q
Y?WhatpercentageisassignedtoProductZ?Arethesepercentagessimilartothoseobtained
1TF inrequirement11?Why?

2E

2Q
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3E

3Q

4E
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4Q
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6E

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7E

7Q

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