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Hickory Company manufactures two products13,000 units of Product Y and 5,000 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 $829,500 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	$	246,000	12,000	MHs
Machine setups	Number of setups	$	137,500	250	setups
Product design	Number of products	$	89,000	2	products
General factory	Direct labor-hours	$	357,000	14,400	DLHs

Activity Measure	Product Y	Product Z
Machine-hours	7,500	4,500
Number of setups	40	210
Number of products	1	1
Direct labor-hours	8,500	5,900

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate calculations to 2 decimal places.)

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

Which of the following statements is true?

Multiple Choice

• Contribution margin + fixed expenses = net operating income

• Contribution margin + net operating income = sales

• Sales contribution margin = net operating income

• Sales variable expenses = contribution margin

A cost-volume-profit (CVP) graph contains three lines. Which of the following is not explicitly depicted by one of those three lines?

Multiple Choice

• Total contribution margin

• Total sales

• Total expenses

• Total fixed expenses