available for the company as a whole and for Products Y and Z: Estimated Overhead Cost $ 209,000 $ 171,100 $ 93,000 $ 259,000 Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setupa Number of products Direct labor-hours ty rate Product Y Product I 8,900 1,100 50 240 1 8.900 per MH 1 1,100 hat is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Expected Activity 10,000 MM 290 setups 2 products 10,000 DLH
available for the company as a whole and for Products Y and Z: Estimated Overhead Cost $ 209,000 $ 171,100 $ 93,000 $ 259,000 Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setupa Number of products Direct labor-hours ty rate Product Y Product I 8,900 1,100 50 240 1 8.900 per MH 1 1,100 hat is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Expected Activity 10,000 MM 290 setups 2 products 10,000 DLH
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Machining
Number of setups
Number of products
Direct labor-hours
Activity Measure
Machine-hours
Number of setupa
Number of products
Direct labor-hours
Activity rate
Estimated
Overhead Cost
$209,000
$ 171,100
$93,000
$ 259,000
per MH
Product Y Product I
8,900
1,100
50
240
1
8.900
1
1,100
Expected Activity
10,000 MM
290 setups
2 products
3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
10,000 DL
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