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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 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 Activity Cost Pool Activity Measure Cost Expected Activity Machining Machine setups Product design General factory Machine-hours Number of setups Number of products Direct labor-hours $ 209,000 10,000 MHs $ 171,100 290 setups $ 93,000 $ 259,000 2 products 12,000 DLHS Activity Measure Machine-hours Number of setups Product Y Product Z 7,900 50 2,100 240 Number of products 1 1 Direct labor-hours 8,900 3,100 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Total manufacturing overhead cost
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