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:






Activity Cost Pool
Activity Measure
Estimated Overhead Cost
Expected Activity


Machining
Machine-hours
$
213,400
11,000
MHs


Machine setups
Number of setups
$
61,600
140
setups


Production design
Number of products
$
78,000
2
products


General factory
Direct labor-hours
$
244,000
13,200
DLHs








Activity Measure
Product Y
Product Z


Machine-hours
6,400
4,600


Number of setups
60
80


Number of products
1
1


Direct labor-hours
7,400
5,800




Question : 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.)


I got $326,312 by adding results of multiplying 19.40 x 6,400 + 60 x 440 + 39,000 + 7,400 x 18.48 but this was marked wrong and the activity rates I got were marked right prior.

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:






Activity Cost Pool

Activity Measure

Estimated Overhead Cost

Expected Activity



Machining

Machine-hours

$

213,400

11,000

MHs



Machine setups

Number of setups

$

61,600

140

setups



Production design

Number of products

$

78,000

2

products



General factory

Direct labor-hours

$

244,000

13,200

DLHs









Activity Measure

Product Y

Product Z



Machine-hours

6,400

4,600



Number of setups

60

80



Number of products

1

1



Direct labor-hours

7,400

5,800





Question : 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.)


I got $326,312 by adding results of multiplying 19.40 x 6,400 + 60 x 440 + 39,000 + 7,400 x 18.48 but this was marked wrong and the activity rates I got were marked right prior.




how wrong were you? If you used a spreadsheet and referenced a cell instead of a number entered in a cell ie; 18.48 or 18.484848^ you would get a different answer I did the problem and got the same answer you did using rounded amounts