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Hickory Company manufactures wwe products-14,000 units of Product and 6.000 units of product. The company uses a plantwide overhead rate based on direct labour hours
Hickory Company manufactures wwe products-14,000 units of Product and 6.000 units of product. The company uses a plantwide overhead rate based on direct labour hours is considering implementingan activity based costing (ABC) ystem that allocates all of its manufacturing overhead to four cor pools. The following additional information is available for the company as a whole and for Products and Activity Cost Peel Activity Measure Estimated Overhead Cost Expected Activity Machining Machine hours $ 200.000 10,000 MHS Machines Number of setups $100.000 200 Production design Number of products $84.000 2 products General factory Direct labour hours $300.000 12.000 LHE Activity Measure Product Y Product Machining 7.000 3.000 Number of sets 50 150 Number of products 1 1 Direct labour-hours 3.000 2000 Using the ABC system how much tota marturing over con would be assigned to product for the Machine Setup Activity? A) $25.000 8) 566.667 C) $75.000 D) $100.000 E) 550.000
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