Hickory Company manufactures two products14,000 units of Product Y and 6,000 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 $586,500 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	$ 195,000	10,000	MHs
Machine setups	Number of setups	$ 67,500	150	setups
Product design	Number of products	$ 79,000	2	products
General factory	Direct labor-hours	$ 245,000	12,000	DLHs

Activity Measure	Product Y	Product Z
Machine-hours	6,500	3,500
Number of setups	50	100
Number of products	1	1
Direct labor-hours	7,500	4,500

1. What is the companys plantwide overhead rate?

2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

3. What is the activity rate for the Machining activity cost pool?

4. What is the activity rate for the Machine Setups activity cost pool?

5. What is the activity rate for the Product Design activity cost pool?

6. What is the activity rate for the General Factory activity cost pool?

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

multiple choice

General factory

Product design

Machine setups

Machining

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

multiple choice

Machining

Machine setups

Product design

General factory

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?