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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 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: Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Estimated Overhead Cost $227, 700 $ 153, 900 $ 91,000 $257,000 Expected Activity 11,000 MH 270 setups 2 products 13, 200 DLHs Product Y 7,700 60 Product Z 3, 300 210 1 8, 700 4, 500 Required: 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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