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Hickory Company manufactures two products15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct

Hickory Company manufactures two products15,000 units of Product Y and 7,000 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 $664,200 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 $ 221,100 11,000 MHs
Machine setups Number of setups $ 107,100 210 setups
Product design Number of products $ 85,000 2 products
General factory Direct labor-hours $ 251,000 13,200 DLHs

Activity Measure Product Y Product Z
Machine-hours 7,100 3,900
Number of setups 60 150
Number of products 1 1
Direct labor-hours 8,100 5,100

Which of the four activities is a batch-level activity? PICK ONE

  • Machine setups activity

  • Machining activity

  • General factory activity

  • Product design activity

Which of the four activities is a product-level activity? PICK ONE

  • Product design activity

  • Machine setups activity

  • General factory activity

  • Machining activity

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

Total manufacturing overhead cost___________

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