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 $$597,000$ 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 Activity Measure Estimated Overhead Cost Expected Activity

Machining Machine$-$hours $ $213,40011,000$ MHs

Machine setups Number of setups $ $61,600140$ setups

Product design Number of products $ $78,0002$ products

General factory Direct labor$-$hours $ $244,00013,200$ DLHs

Activity Measure Product Y Product Z

Machine$-$hours $6,4004,600$

Number of setups $6080$

Number of products $11$

Direct labor$-$hours $7,4005,800$

$9.$ Using the ABC system, how much total manufacturing overhead cost is assigned to Product Y$?$

Answer rating: 100% (QA)

To determine the total manufacturing overhead cost assigned to Product Y using the activitybased costing ABC system we need to allocate the estimated ... View the full answer