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Required information Hickory Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based
Required information Hickory Company manufactures two products13,000 units of Product Y and 5,000 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 $ 235, 200 $ 73,600 $ 80,000 $ 295, 200 Expected Activity 12,000 MHS 160 setups 2 products 14,400 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 6,600 40 1 7,600 Product Z 5,400 120 1 6,800 Required: What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH 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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