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What is the activity rate of the Product Design activity cost pool? ! Required information (The following information applies to the questions displayed below.) Hickory
What is the activity rate of the Product Design activity cost pool?
! Required information (The following information applies to the questions displayed below.) Hickory Company manufactures two products-15,000 units of Product Y and 7,000 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 $696,000 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 setup Product design General factory Activity Measure Machine-hours Number of setup Number of products Direct labor-hours Estimated Overhead Cost $ 224,400 129,600 $ 88,000 $ 250,000 Expected Activity 11,000 Mills 240 setupa 2 producto 13,200 DLS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y 7,400 60 1 8,400 Product * 3,600 180 4.800 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product Step by Step Solution
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