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Required information [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

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Required information [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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $732,100 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: Estimated Overhead Cost Expected Activity Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products 93,000 Direct labor-hours 259,000 12,000 DLHs 209,000 10, 000 MHs 171,100 290 setups 2 products Activity Measure Product YProduct 2 Machine-hours Number of setups Number of products Direct labor-hours 7,900 50 2,100 240 8,900 3,100 7. Which of the four activities is a batch-level activity? General factory activity Product design activity Machining activity Machine setups activity

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