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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
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: Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Estimated Overhead Cost $ 2ee, eee $ 100,000 $ 84, eee $ 300, eee Expected Activity 1 , 200 setups 2 products 12,800 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7. eee 50 1 8,000 Product z 3,000 150 1 4, eee 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: Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Estimated Overhead Cost $ 2ee, eee $ 100,000 $ 84, eee $ 300, eee Expected Activity 1 , 200 setups 2 products 12,800 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7. eee 50 1 8,000 Product z 3,000 150 1 4, eee
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