Ask Me Help Desk - Total Manufacturing Costs Question Need Help

Quote:

Originally Posted by sagnik2422

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

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.