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What is the activity rate rate for the Machine Setups activity cost pool? Required information [The following information applies to the questions displayed below) Hickory
What is the activity rate rate for the Machine Setups 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 setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 224,400 $ 129,600 $ 88,000 $ 254,000 Expected Activity 11,000 Mis 240 setups 2 products 13,200 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y 7.400 60 1 Product * 3,600 180 1 4,800 8,400 4. What is the activity rate for the Machine Setups activity cost pool? Activity rato per setup Step by Step Solution
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