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Required information [ The following information applies to the questions displayed below. ] Hickory Company manufactures two products - 1 5 , 0 0 0

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[The following information applies to the questions displayed below.]
Hickory Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $571,200 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 :
\table[[,,Estimated Overhead,],[Activity Cost Pool,Activity Measure,Cost,Expected Activity],[Machining,Machine-hours,$210,100,11,000 MHs],[Machine setups,Number of setups,$45,100,110 setups],[Product design,Number of products,$75,000,2 products],[General factory,Direct labor-hours,$241,000,13,200 DLHs]]
\table[[Activity Measure,Product Y,Product Z],[Machine-hours,6,100,4,900],[Number of setups,50,60],[Number of products,1,1],[Direct labor-hours,7,100,6,100]]
What is the activity rate for the Product Design activity cost pool?
Activity rate
per product
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