Hickory Company manufactures two products-15,000 units of Product Y and 7.000 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.) Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?(Round your intermediate ccalculations to 2 decimal places and final answers to the nearest dollar amount.) Solution Hi, Please find the answer as follows: Total Manufacturing Cost Allocated to Y = 221100/11000*7100 + 107100*60/210 + 85000*1/2 + 251000*8100/10000 = 419120 Answer is 419055. Thanks. .

1. Hickory Company manufactures two products-15,000 units of Product Y and 7.000 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.) Using the plantwide overhead
rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?(Round
your intermediate ccalculations to 2 decimal places and final answers to the nearest dollar
amount.)
Solution
Hi,
Please find the answer as follows:
Total Manufacturing Cost Allocated to Y = 221100/11000*7100 + 107100*60/210 +
85000*1/2 + 251000*8100/10000 = 419120
Answer is 419055.
Thanks.