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 $684,000 of its manufacturing overhead to four cost pools. The following additional Information is uvailable for the company as a whole and for Products Y and Z: Estimated Overhead Expected Activity Cost Pool Activity Measure Cost Activity Machining Machine-hours $ 235,200 12,880 MHS Machine setups Number of setups $ 73,680 160 setups Product design Number of products $ Be, ege 2 products General factory Direct labor-hours $295,200 14,400 DLH5 Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product Z 6,600 5,480 40 12e 1 1 7,688 6,888 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Activity and per MH 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 $684,000 of its manufacturing overhead to four cost pools. The following additional Information is avallable for the company as a whole and for Products Y and Z: Estimated Overhead Expected Activity Cost Pool Activity Measure Cost Activity Machining Machine-hours $ 235,200 12,000 MHS Machine setups Number of setups $ 73,608 160 setups Product design Number of products $ 80,000 2 products General factory Direct labor-hours. $295,200 14,408 DLHs Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product Z 6,600 5,480 4@ 120 1 1 7,608 6,800 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup 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 $684,000 of its manufacturing overhead to four cost pools. The following additional information is avallable for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Product design General factory Estimated Overhead Expected Activity Measure Cost Activity Machine-hours $ 235,200 12,000 MHS Number of setups $ 73,600 160 setups Number of products $ 80,000 2 products Direct labor-hours $295,288 14,48DLHS Product Product Activity Measure Machine-hours Number of setups Number of products Direct labor-hours 6,600 40 1 7,600 5,400 128 1 6,800 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product
