Question

Savod Required information [The following information applies to the questions displayed below Hickory Company manufactures two products--13,000 units of Product Y and 5.000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABOC) system that allocates all $829,500 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 Estimated Overhead Activity MeasureCostl Expected Activi Activity Cost Poo Machining Machine setups Product design General factory Machine-hours Number of setups Number of products Direct labor-hours S 246,000 12,0ee MHs s 137,5e0250 setups $ 89,000 S 357,000 14,480 DLHS 2 products Activity Measure Product Y Product Machine-hours Number of setups Number of products Direct labor-hours 7,588 40 4, 580 218 8,500 5,980 5. What is the activity rate for the Product Design activity cost pool? per product rate

Answer 1

Hi