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Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products14,000 units of Product Y and 6,000 units of Product
Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products14,000 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 $684,000 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 $ 200,000 Expected Activity 10,000 MHS $ 100,000 200 setups $ 84,000 $ 300,000 2 products 12,000 DLHS Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 7,000 50 3,000 150 1 1 8,000 4,000 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Total manufacturing overhead cost
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