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[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.

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[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 labour-hours. It is considering implementing an activity-based costing (ABC) system that allocates all 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 Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Estimated Overhead Cost $200,000 $100,000 $ 84,000 $300,000 Expected Activity 10,000 MH 200 setups 2 products 12,000 DLHS Activity Measure Machine-hours Number of setups. Number of products Direct labour-hours Product Y 7,000 50 1 8,000 Required: What is the activity rate for the Machining activity cost pool? Activity rates per MH Product Z 3,000 150 4,000

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