5 Hickory Company manufactures two products-14,000 units of Product Y and 6,000 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 $684,000 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 10 Activity Cost Pool Machining 11 12 Machine setups Activity Measure Machine-hours Number of setups Estimated Overhead Cost Expected Activity $200,000 10,000 MHS $100,000 200 setups 13 Product design Number of products $84,000 2 products 14 General factory Direct labor-hours $300,000 12,000 DLHS 15 16 17 18 19 20 21 22 23 Activity Measure Product Y Product Z Machine-hours 7,000 3,000 Number of setups Number of products Direct labor-hours 50 150 1 8,000 4,000 Page 341