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Hickory Company manufactures two products-15,000 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 products-15,000 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 $765,000 of its manufacturing overhead to four cost pools. The following additiona information is available for the company as a whole and for Products Y and Z: Estimated Overhead Expected Activity Activity Cost Pool Activity Measure Cost Machining Machine-hours 231,000 11,000 MHs 300 setups Machine setups 180,000 Number of setups Product design Number of products 94,000 2 products labor-hours 260,000 13,200 DLHs General factory Direct Activity Measure Product YProduct Z Machine-hours 8,000 3,000 Number of setups 60 240 Number of products Direct labor-hours 7,000 6,200 Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your rcentage" answers to 2 decimal places.) Product Y Product z chine setups cost
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