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Re Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The compan uses a plantwide overhead rate based
Re Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The compan uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costim (ABC) system that allocates all $664,200 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 General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Product Y Product 2 7,100 60 3,900 150 1 1 8,100 5,100 Cost $ 221,100 $ 107,100 $ 85,000 $ 251,000 Expected Activity 11,000 MHs 210 setups. 2 products 13,200 DLHS Required: 1. What is the company's plantwide overhead rate? Note: Round your answer to 2 decimal places. Answer is complete but not entirely correct. $ 19.02 per DLH Plantwide overhead rate
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