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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
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 available for the company as a whole and for Products Y and Z: Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Product Y Product Z 6,600 40 5,400 120 Number of products 1 1 Direct labor-hours 7,600 6,800 Cost $ 235,200 $ 73,600 $ 80,000 $ 295,200 Expected Activity 12,000 MHS 160 setups 2 products DLHS 14,400 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup 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 available for the company as a whole and for Products Y and Z: Estimated Overhead Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 6,600 40 5,400 120 Number of products 1 1 Direct labor-hours 7,600 6,800 Cost $ 235,200 $ 73,600 $ 80,000 $ 295,200 Expected Activity 12,000 MHS 160 setups 2 products 14,400 DLHS 6. What is the activity rate for the General Factory activity cost pool? Note: Round your answer to 2 decimal places. Activity rate per DLH
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