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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
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 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: Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Estimated Overhead Cost $ 200,000 $ 100,000 Expected Activity 10,000 MH 200 setups Number of products $ Direct labour-hours 84,000 $ 300,000 2 products 12,000 DLHS Product Y 7,000 50 Product Z 3,000 150 1 1 8,000 4,000
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