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ces Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units
ces Required information [The following information applies to the questions displayed below.] 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 $571,200 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 Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Product Y Product z 6,100 50 4,900 60 Number of products Direct labor-hours 1 1 7,100 6,100 Cost $ 210,100 Expected Activity 11,000 MH 110 setups 2 products $ 45,100 $ 75,000 $ 241,000 13,200 DL 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? Product Y Product Z Product design cost
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