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Required information The Foundational 15 L07-1, L07-3, LO7-4) [The following information applies to the questions displayed below. Hickory Company manufactures two products-14,000 units of Product

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Required information The Foundational 15 L07-1, L07-3, LO7-4) [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 consideringg implementing an activity-based costing (ABC) system that allocates all $791,400 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 Cost Expected Activity Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products 87,000 Direct labor-hours 379,500 12,000 DLHs 203,000 10,000 MHs 121,900 230 setups 2 products Activity Measure Product Y Product z Machine-hours Number of setups Number of products Direct labor-hours 7,300 50 2,700 180 9,500 2,500

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