Required information

Skip to question

[The following information applies to the questions displayed below.]

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:

	Activity Measure	Estimated Overhead Cost			Expected Activity
Machining	Machine-hours	$	246,000		12,000	MH
Machine setups	Number of setups	$	137,500		250	setups
Product design	Number of products	$	89,000		2	products
General factory	Direct labour-hours	$	357,000		14,400	DLHs

Activity Measure	Product Y			Product Z
Machine-hours		7,500			4,500
Number of setups		40			210
Number of products		1			1
Direct labour-hours		8,500			5,900

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.)