Hickory Company manufactures two products—14,000 units ofProduct Y and 6,000 units of Product Z. The company uses aplantwide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) systemthat allocates all of its manufacturing overhead to four costpools. The following additional information is available for thecompany as a whole and for Products Y and Z:
| Activity CostPool | ActivityMeasure | Estimated Overhead Cost | Expected Activity |
| Machining | Machine-hours | $ | 209,000 | 10,000 | MHs |
| Machine setups | Number of setups | $ | 171,100 | 290 | setups |
| Production design | Number of products | $ | 93,000 | 2 | products |
| General factory | Direct labor-hours | $ | 259,000 | 12,000 | DLHs |
|
| ActivityMeasure | Product Y | Product Z |
| Machine-hours | 7,900 | 2,100 |
| Number of setups | 50 | 240 |
| Number of products | 1 | 1 |
| Direct labor-hours | 8,900 | 3,100 |
Question: Using the ABC system, what percentage of the Machiningcosts is assigned to Product Y and Product Z? |
