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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

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 labor-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 Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 231,600 12,000 MHs
Machine setups Number of setups $ 55,900 130 setups
Production design Number of products $ 77,000 2 products
General factory Direct labor-hours $ 364,500 14,400 DLHs

Activity Measure Product Y Product Z
Machine-hours 6,300 5,700
Number of setups 40 90
Number of products 1 1
Direct labor-hours 9,000 5,400

Required:

6-

Required:

What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

7-

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

Machining activity
General factory activity
Product design activity
Machine setups activity

8-

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

Product design activity
Machining activity
Machine setups activity
General factory activity

9-

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

10-

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

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