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Hickory Company manufactures two products 1 5 , 0 0 0 units of Product Y and 7 , 0 0 0 units of Product Z

Hickory Company manufactures two products15,000 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 $597,000 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:
Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 213,40011,000 MHs
Machine setups Number of setups $ 61,600140 setups
Product design Number of products $ 78,0002 products
General factory Direct labor-hours $ 244,00013,200 DLHs
Activity Measure Product Y Product Z
Machine-hours 6,4004,600
Number of setups 6080
Number of products 11
Direct labor-hours 7,4005,800
9. Using the ABC system, how much total manufacturing overhead cost is assigned to Product Y?

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