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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: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.) Estimated Overhead Activity Cost Pool Activity Measure Cost Expected Activity Machining Machine-hours 12,000 MHs Machine setups 73,600 Number of setups $ 160 setups 80,000 Production design Number of products $ 2 products $235,200 General factory Direct labor-hours 295,200 12,000 DLHS $ Activity Measure Machining Number of setups Nimhor efnradert Product Product Y Z 6,600 5,400 40 120 4 arch o 89 hp 18 fa fo hu 144 % 5 ( 3 4 6 & 7 8 9 Saved 80,000 Production design Number of products $ 2 products 295,200 General factory Direct labor-hours $ 12,000 DLHs Activity Measure Machining Number of setups Number of products Direct labor-hours Product Product Y Z 6,600 5,400 40 120 1 1 7,600 4,400 Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing overhead cost
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