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total manufacturing overheads cost Hickory Company manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead
total manufacturing overheads cost
Hickory Company manufactures two products14,000 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: Activity Cost Pool 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 MHS 200 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labour-hours Product Product Y Z 1,000 3,000 50 150 1 1 8,000 4,000 Required: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product YStep by Step Solution
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