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Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. company uses a plantwide overhead rate based on direct labor-hours.
Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The follo additional information is available for the company as a whole and for Products Y and Z: Estimated Activity Cost Pool Activity Measure Overhead Cost Expected Activity Machining.. Machine-hours $200,000 10,000 MHS Machine set up5 ...minimum Number of setups $100,000 200 setups Production design... Number of products $84,000 2 products General factory . ..it 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 1 Direct labor-hours .........!! 8,000 4,000 What is the company's plantwide overhead rate? Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Prod much is allocated to Product Z
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