Required informationFoundational (Algo) [LO4-1, LO4-2, LO4-3, LO4-4]Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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 MeasureMachiningNumber of setupsNumber of productsDirect labor-hoursEstimatedActivity Measure Overhead Cost Expected ActivityMachine-hours$ 228,00012,000 MHSNumber of setupsNumber of productsDirect labor-hours$ 40,000$ 74,000$ 288,000Product Y Product Z7,0004017,0005,0006015,000100 setups2 products12,000 DLHSFoundational 4-9 (Algo)9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediatecalculations to 2 decimal places. Round your answers to the nearest dollar amount.)Total manufacturing overhead cost

ABC stands for Activity Based Costing.It is a technique of overhead allocation under which overhead…

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) Total manufacturing overhead cost

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) Total manufacturing overhead cost

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

Required information
Foundational (Algo) [LO4-1, LO4-2, LO4-3, LO4-4]
Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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
Machining
Number of setups
Number of products
Direct labor-hours
Estimated
Activity Measure Overhead Cost Expected Activity
Machine-hours
$ 228,000
12,000 MHS
Number of setups
Number of products
Direct labor-hours
$ 40,000
$ 74,000
$ 288,000
Product Y Product Z
7,000
40
1
7,000
5,000
60
1
5,000
100 setups
2 products
12,000 DLHS
Foundational 4-9 (Algo)
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate
calculations to 2 decimal places. Round your answers to the nearest dollar amount.)
Total manufacturing overhead cost

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Required information [The following information applies to the questions displayed below.] Hickory Company manufactures two products-13,000 units of Product Y and 5,000 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 $684,000 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: Estimated Overhead. Cost $ 235,200 $73,600 $ 80,000 $ 295,200 Activity Cost Pool Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours: Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y Product Z 6,600 5,400 40 120 1 7,600 6,800 Expected Activity 12,000 MHS 160 setups 2 products 14,400 DLHS