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Required Information i [The following information applies to the questions displayed below] Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units
Required Information i [The following information applies to the questions displayed below] 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 Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y Estimated Overhead Cost $200,000 $100,000 $ 84,000 $300,000 Product 2 Number of setups 7,000 se 3,000 150 Number of products 1 1 Direct labour-hours 8,000 4,000 Expected Activity 10,000 MH 200 setups 2 products 12,000 bus Required: Which of the four activities is a product-level activity? O Product design activity O Machine setups activity O Machining activity O General factory activity
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