Question: Question 14 2 points Save Answer Hickory Company manufactures two products--14,000 units of Product Y and 6,000 units of Product Z. The company uses a
Question 14 2 points Save Answer 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: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 200,000 10,000 MHS Machine setups Number of setups $100,000 200 setups Production design Number of products $84,000 2 products General factory Direct labour-hours $300,000 12,000 DLHS Activity Measure Product Y Product Z 1 Machining 7,000 3,000 Number of setups 50 150 Number of products 1 Direct labour-hours 8,000 4,000 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? A) $277,000 B) $340,000 C) $332,000 D) $407,000 E) $684,000 Enter only the letter of the correct response in the space below (ie. A B, C, D, or E)
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