Question
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
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:
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
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