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Hickory Company manufactures two products - 1 3 , 0 0 0 units of Product Y and 5 , 0 0 0 units of Product
Hickory Company manufactures two products units of Product and units of Product The company uses a plantwide overhead rate based on direct laborhours. It is considering implementing an activitybased 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 and :
tableEstimated Overhead,Activity cost Pool,Activity Measure,Cost,Expected ActivityMachiningMachinehours,$ MHsMachine setups,Number of setups,$ setupsProduct design,Number of products,$ productsGeneral factory,Direct laborhours,$ DLHs
tableActivity Measure,Product YProduct ZMachinehours,Number of setups,Number of products,Direct laborhours,
What is the activity rate for the Machine Setups activity cost pool?
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