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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 -13,000 units of Product Y and 5,000 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 $630,000 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 :
\table[[,,Estimated Overhead,],[Activity cost Pool,Activity Measure,Cost,Expected Activity],[Machining,Machine-hours,$228,000,12,000 MHs],[Machine setups,Number of setups,$40,000,100 setups],[Product design,Number of products,$74,000,2 products],[General factory,Direct labor-hours,$288,000,14,400 DLHs]]
\table[[Activity Measure,Product Y,Product Z],[Machine-hours,10,000,2,000],[Number of setups,40,60],[Number of products,1,1],[Direct labor-hours,7,000,7,400]]
What is the activity rate for the Product Design activity cost pool?
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