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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 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 Estimated Overhead Cost $ 210,100 $ 45,100 $ 75,000 $ 241,000 Expected Activity 11,000 MHs 110 setups 2 products 13,200 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 6,100 50 1 7,100 Product Z 4,900 60 1 6,100 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.) Provide final answer, and show supporting calculations for part marks
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