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[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 $664,200 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: Estimated Overhead Activity Measure Expected Machining Activity Machine setups $221,100 11,000 Product design $107,100 210 setups Number of products Direct labor-hours $85,000 products $251,000 13,200 DLHs
Product Y Product Z
Number of products 7,100 3,900
Number of product Direct labor-hours 8,100
5. What is the activity rate for the Product Design activity cost pool per product?