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Required information [The following information applies to the questions displayed below.) Hickory Company manufactures two products-13,000 units of Product Y and 5,000 units of
Required information [The following information applies to the questions displayed below.) Hickory Company manufactures two products-13,000 units of Product Y and 5,000 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 $788,400 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 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 Estimated Overhead Product Y Product z 6,900 5,100 40 150 1 1 7,900 6,500 Cost $238,800 $ 93,100 Expected Activity 12,000 Mila $ 83,000 $ 373,500 190 setups 2 products 14,400 DLHS
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