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 labour-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 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 labour-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 labour-hours 9,000 5,400

QUESTION:

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

b) Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

One question, two interrelated answers (not multiple concepts)

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 labour-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: Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Estimated Overhead Cost $231,600 $ 55,900 $ 77,000 $364,500 Expected Activity 12,000 MHs 130 setups 2 products 14,400 DLHs Product Y Product Z 6,300 Activity Measure Machine-hours Number of setups Number of products Direct labour-hours 40 1 5,700 90 1 5,400 9,000 What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Product Y Product Z Manufacturing overhead allocated