iRequired informationGreenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The.companyuses 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 isavailable for the company as a whole and for Products Y and Z:Activity Cost PoolMachiningMachine setupsProduction designGeneral factoryActivity MeasureMachine-hoursNumber of setupsNumber of productsDirect labor-hoursEstimatedOverhead Cost$ 200,000$ 100,000$ 84,000$ 300,000Product Y Product ZExpected Activity10,000 MHS200 setups2 products12,000 DLHSActivity MeasureMachiningNumber of setups8,000402,000160Number of products11Direct labor-hours9,0003,0007. Which of the four activities is a batch-level activity?O Machine setups activityO Product design activityO General factory activityO Machining activity

1) Batch Level Activity:Batch-level activities are costs related to the production of a batch of one…

Answered: 7. Which of the four activities is a…

7. Which of the four activities is a batch-level activity? O Machine setups activity O Product design activity O General factory activity O Machining activity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

i
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:
Activity Cost Pool
Machining
Machine setups
Production design
General factory
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Estimated
Overhead Cost
$ 200,000
$ 100,000
$ 84,000
$ 300,000
Product Y Product Z
Expected Activity
10,000 MHS
200 setups
2 products
12,000 DLHS
Activity Measure
Machining
Number of setups
8,000
40
2,000
160
Number of products
1
1
Direct labor-hours
9,000
3,000
7. Which of the four activities is a batch-level activity?
O Machine setups activity
O Product design activity
O General factory activity
O Machining activity

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