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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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $614,400 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 Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 198,000 $ 86,400 $ 82,000 $ 248,000 Expected Activity 10,000 MHS 180 setups 2 products 12,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 6,800 3,200 130 1 1 7,800 4,200 50 Required: 1. What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.) Plantwide overhead rate per DLH What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Activity rate S per MH What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup b. What is the activity rate for the Product Design activity cost pool? Activity rate per product What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH
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