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Hickory Company manufactures two products13,000 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 $630,000 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:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost	Expected Activity
Machining	Machine-hours	$ 228,000	12,000	MHs
Machine setups	Number of setups	$ 40,000	100	setups
Product design	Number of products	$ 74,000	2	products
General factory	Direct labor-hours	$ 288,000	14,400	DLHs

Activity Measure	Product Y	Product Z
Machine-hours	10,000	2,000
Number of setups	40	60
Number of products	1	1
Direct labor-hours	7,000	7,400

1. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

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

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

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

5. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

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