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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: Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 6,500 50 1 7,500 Product Z 3,500 100 1 4,500 Estimated Overhead Cost $ 195,000 $ 67,500 $ 79,000 Expected Activity 10,000 MHS 150 setups 2 products $ 245,000 12,000 DLHS Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round Intermediate calculations and round your final answer to the nearest dollar amount.) Total manufacturing overhead cost
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