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Required information Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate
Required information Hickory Company manufactures two products-14,000 units of Product Y and 6,000 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 Estimated Overhead Machining Machine setups Production design General factory Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Cost Expected Activity $209,000 10,000 MHs $171,100 290 setups $ 93,000 2 products $ 259,000 12,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7,900 50 1 Product 2 2,100 240 1 8,900 3,100 Required: What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH
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