Question: 1. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? 2. Using the ABC system, how much total

 1. Using the ABC system, how much total manufacturing overhead cost
1. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?
2. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

[The following information applies to the questions displayed below.) Hickory Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-hours. It is considering implementing an activity-based costing (ABC) system that allocates all 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: Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Estimated Overhead Cost $200,000 $100,000 $ 84,000 $300,000 Expected Activity 10,000 MH 200 setups 2 products 12,000 DLHS Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Product Y 7,000 50 1 8,000 Product Z 3,000 150 1 4,000

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