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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: Activity Cost Pool Activity Measure Estimated Overhead 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 labour-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 labour-hours 8,000 4,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product ? A) 277,000 D) $340,000 5332.000 D) 5407.000 E) 5684,000 Enter only the letter of the correct response in the space belowie A B C D or E)

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