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Required information The following information applies to the questions displayed below] manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The
Required information The following information applies to the questions displayed below] manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The company use a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $729,000 of its manufacturing overhead to four cost pools. The following additional informati on is available for the company as a whole and for Products Y and Z Estimated Overhead Cost Expected Activity Activity Measu Activity Cost Pool Machining Machine setups Product design General factory 231, 600 12,000 MHa Machine-hours Number of setups 55, 900 130 setups Number of products $ 77,000 Direct labor-hours 364, 500 14, 400 DLH 2 products Produet Product Activity Measure Machine-hours Number of setups Number of products 6,3005,700 90 40 Direct labor-hours 9,000 5,400
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