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Company manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate base Surs. It is
Company manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate base Surs. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. Thef al information is available for the company as a whole and for Products Y and Z. ng e setups ion design 1 factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Estimated Overhead Cost $ 198,000 86,400 $ 82,000 248,000 Expected Activity 10,000 MHs 180 setups 2 products 12,000 DLHs Activity Measure e-hours of setups rof products abour-hours Product Y 6,800 50 1 7,800 Product Z 3,200 130 1 4,200 the activity rate for the Machine Setups activity cost pool? (your answer should be PER SETUP)
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