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Required information [The following information applies to the questions displayed below.] Hickory...

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Accounting

Required information
[The following information applies to the questions displayed below.]
Hickory Company manufactures two products-15,000 units of Product Y and 7,000 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 $597,000 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 Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
What is the activity rate for the Product Design activity cost pool?
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