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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
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 $705600 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 10,000 s Machine setups Number of setups $ 50,400 120 setups Product design Number of products $ 76,000 2 products General factory Direct labor-hours 12,000 DUH Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product 2 6,200 3,800 5e 70 1 1 10,000 2.ee 4. What is the activity rate for the Machine Setups activity cost pool? Activity per setup
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