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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 labour-hours. It is considering implementing an activity-based costing (ABC) system that allocates all 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 Measure	Estimated Overhead Cost	Expected Activity
Machining	Machine-hours	$	238,800		12,000	MH
Machine setups	Number of setups	$	93,100		190	setups
Product design	Number of products	$	83,000		2	products
General factory	Direct labour-hours	$	373,500		14,400	DLHs

Activity Measure	Product Y	Product Z
Machine-hours		6,900			5,100
Number of setups		40			150
Number of products		1			1
Direct labour-hours		7,900			6,500

Predetermined overhead rate = Per DLH

Manufacturing OHR for products y and Product Z

Activity rate

What is the activity rate for the Machining activity cost pool?

What is the activity rate for the Machine Setups activity cost pool?

What is the activity rate for the Product Design activity cost pool?

What is the activity rate for the General Factory activity cost pool?

Which of the four activities is a batch-level activity?

multiple choice

• Product design activity
• Machine setups activity
• Machining activity
• General factory activity

Which of the four activities is a product-level activity?

multiple choice

• General factory activity
• Product design activity
• Machine setups activity
• Machining activity

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

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