68000 minutes 568000 minutes 2953600 minutes 454400

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68,000 minutes568,000 minutes2,953,600 minutes454,400 minutesExplanation:Knowledge Check 01Unused capacity = Practical capacity − Customer service used = 2,496,000 − 1,928,000 = 568,000 minutes
Multiple ChoiceDifficulty: 2 MediumLearning Objective: 07-07 (Appendix 7A) Usetime-driven activity-based costing to analyzecapacity.References
[The following information applies to the questions displayed below.]Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The companyuses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing(ABC) system that allocates all $684,000 of its manufacturing overhead to four cost pools. The following additionalinformation is available for the company as a whole and for Products Y and Z:Activity Cost PoolActivity MeasureEstimatedOverhead CostExpected ActivityMachiningMachine-hours$200,00010,000MHsMachine setupsNumber of setups$100,000200setupsProduct designNumber of products$84,0002productsGeneral factoryDirect labor-hours$300,00012,000DLHsActivity MeasureProduct YProduct ZMachine-hours7,0003,000Number of setups50150Number of products11Direct labor-hours8,0004,000

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