6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
Activity rate
per DLH
Transcribed Image Text:6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Activity rate per DLH
Required information
Greenwood 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:
Estimated
Expected
Activity
10,000 MHs
260 setups
2 products
12,000 DLHS
Overhead
Activity Cost Pool
Machining
Machine setups
Production design
General factory
Activity Measure
Machine-hours
Cost
Number of setups
Number of products
Direct labor-hours
$ 206,000
$ 145,600
2$
90,000
$ 307, 200
Activity Measure
Machining
Number of setups
Number of products
Direct labor-hours
Product Y
Product z
8,600
1,400
50
210
1
1
8,600
3,400
Transcribed Image Text:Required information Greenwood 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: Estimated Expected Activity 10,000 MHs 260 setups 2 products 12,000 DLHS Overhead Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Cost Number of setups Number of products Direct labor-hours $ 206,000 $ 145,600 2$ 90,000 $ 307, 200 Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y Product z 8,600 1,400 50 210 1 1 8,600 3,400
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