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 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: (The total estimated overhead cost may not agree with the sum of allocated overhead costs to each product.)
| Activity Cost Pool |
Activity Measure |
Estimated Overhead Cost |
Expected Activity |
| Machining |
Machine Hours |
$206,000 |
$10,000 MHS |
| Machine Setups |
Number of Setups |
$145,600 |
260 setups |
| General Factory |
Direct Labor Hours |
$307,200 |
12,000 DLHs |
| Activity Measure |
Product Y |
Product Z |
| Machining |
7,600 |
2,400 |
| Number of Setups |
50 |
210 |
| Number of Products |
1 |
1 |
| Direct Labor Hours |
8,600 |
3,400 |
A. What is the company's plantwide overhead rate (round your answer to 2 Decimal Places)
B. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)