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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

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 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: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.)

Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 203,000 10,000 MHs
Machine setups Number of setups $ 121,900 230 setups
Production design Number of products $ 87,000 2 products
General factory Direct labour-hours $ 379,500 15,000 DLHs

Activity Measure Product Y Product Z
Machining 7,300 2,700
Number of setups 50 180
Number of products 1 1
Direct labour-hours 9,500 5,500

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.)

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