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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
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 $571,200 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 Machining Machine setups Product design Activity Measure Machine-hours Number of setups Number of products Estimated Overhead Cost $ 210,100 $45,100 $ 75,000 $241,000 Expected Activity 11,000 MHS 13,200 DLHS 110 setups 2 products: General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Direct labor-hours Product Y Product Z 6,100 50 1 7,100 4,900 60 1 6,100 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)
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