[The following information applies to the questions displayed below.] Hickory Co

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[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 labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $684,000 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:

4. What is the activity rate for the Machine Setups activity cost pool?

5. What is the activity rate for the Product Design activity cost pool?

6. What is the activity rate for the General Factory activity cost pool?

8. Which of the four activities is a product-level activity?

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

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

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 1 decimal place.)

12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 1 decimal place.)

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 Product design Number of products $ 84,000 2 products General factory Direct labor-hours $ 300,000 12,000 DLHs

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Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Activity Rate Machining Machine-hours                                200,000.00 10000 MHs                20.00 Machine setups Number of setups                                100,000.00 200 setups             500.00 Product design Number of products                                  84,000.00 2 products       42,000.00 General factory Direct labor-hours                                300,000.00 12000 DLHs                25.00

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