Hickory Company manufactures two products-14,000 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 $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 Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Plantwide overhead rate Product Y 7,000 50 1 8,000 Required: 1. What is the company's plantwide overhead rate? Product Z 3,000 150 1 4,000 Estimated Overhead Cost $ 200,000 $ 100,000 $ 84,000 $ 300,000 per DLH Expected Activity 10,000 MHS 200 setups 2 products 12,000 DLHs

Hickory Company manufactures two products 14,000 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 $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. Required: 1. What is the company's plantwide overhead rate