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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 Product
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 $705 600 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-hours $ 192,000 10,00 MS Machine setups Number of setups $ 50,400 12e setups Product design Number of products $ 76,000 2 products General factory Direct labor-hours $ 387,200 12,080 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Product z 6, 200 3,800 50 70 1 1 18,888 2,000 5. What is the activity rate for the Product Design activity cost pool? Activity Tote per product
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