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Activity rate for product design activity cost pool

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Hickory Company manufactures two products-13,000 units of Product Y and 5,000 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 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 $ 242,400 12,000 MHs Machine setups Number of setups $ 114,400 220 setups Production design Number of products $ 86,000 2 products General factory Direct labor-hours $ 302,400 12,000 DLHs Activity Measure Product Y Product Z Machining 7,200 4,800 Number of setups 40 180 Number of products 1 1 Direct labor-hours 8,200 3,800

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What is the activity rate for the Product Design activity cost pool? Product design activity cost pool $ per product

Reference no: EM131015264

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