Hickory Company manufactures two products 1 5 , 0 0 0 units of Product Y and 7
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Question:
Hickory Company manufactures two products units of Product Y and units of Product Z The company uses a plantwide overhead rate based on direct laborhours. It is considering implementing an activitybased 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:
Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machinehours $ MHs
Machine setups Number of setups $ setups
Product design Number of products $ products
General factory Direct laborhours $ DLHs
Activity Measure Product Y Product Z
Machinehours
Number of setups
Number of products
Direct laborhours
Using the ABC system, how much total manufacturing overhead cost is assigned to Product Y
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