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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

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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 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: Estimated Overhead Activity Cost Pool Activity Measure Cost Expected Activity Machining Machine-hours $ 200,000 10,000 MHs Machine setups Number of setups $ 100,000 200 setups Production design Number of products $ 84,000 2 products General factory Direct labor-hours $ 300,000 12,000 DLHs Activity Measure Product Y Product Z Machining 7,000 3,000 Number of setups 50 150 Number of products Direct labor-hours 8,000 4,000 Required: Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? Product Y Product Z Manufacturing overhead allocatedHickory 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 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: Estimated Overhead Activity Cost Pool Activity Measure Cost Expected Activity Machining Machine-hours $ 200,000 10,000 MHs Machine setups Number of setups $ 100,000 200 setups Production design Number of products $ 84,000 2 products General factory Direct labor-hours $ 300,000 12,000 DLHs Activity Measure Product Y Product Z Machining 7,000 3,000 Number of setups 50 150 Number of products 1 Direct labor-hours 8,000 4,000 Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Total manufacturing overhead cost

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