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XZY Inc. manufactures two different things: Item 1234 and Item 5678. They use a plantwide O/H rate based on direct labor-hours. They are thinking about
XZY Inc. manufactures two different things: Item 1234 and Item 5678. They use a plantwide O/H rate based on direct labor-hours. They are thinking about starting an ABC (activity-based costing) system that allocates its overhead to four cost pools. Take note of the additional info. for the company for Item 1234 and Item 5678. Activity Cost Pool Machining Machine setups Product design Order size Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total Total Cost Activity $180,000 9,000 MHS $125,000 250 setups $ 44,000 2 products $ 260,000 10,000 DLHS Item 5678 Item 1234 5,000 4,000 Activity Measure Machine-hours Number of setups Number of products Direct labor- hours 160 90 1 1 4,000 6,000 Using an Activity Based Costing System, how much overhead cost would be assigned to Item 5678
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