Reference no: EM132581008
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 $745,200 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
Product design Number of products $86,000 2 products
General factory Direct labor-hours $302,400 14,400 DLHs
Activity Measure Product Y Product Z
Machine-hours 7,200 4,800
Number of setups 40 180
Number of products 1 1
Direct labor-hours 8,200 6,200
Question 1: Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)