Question
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 Production 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 Product Y 8,000 60 Product Z 3,000 240 1 7,000 1 6,200 Estimated Overhead Cost $231,000 $180,000 Expected Activity 11,000 MHS 300 setups $ 94,000 $260,000 2 products 13,200 DLHS Required: Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) Product Y Product Z Manufacturing overhead allocated
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