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Required information Hickory Company manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based
Required information Hickory Company manufactures two products14,000 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 Estimated Overhead Expected Activity Measure Cost Activity Machine-hours $203,000 10,000 MHS Number of setups $121,900 230 setups Number of $ 87,000 products 2 products Direct labour- $379,500 12,000 DLHS hours General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y Product Z 7,300 2,700 50 180 1 1 9,500 2,500 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 Product Y Z Manufacturing overhead allocated
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