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Chapter Four Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Required information 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: Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Activity rate Number of setups Number of products Direct labor-hours Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 5. What is the activity rate for the Product Design activity cost pool? per product Saved < Prev 5 Estimated Overhead Cost $ 249,600 $ 162,400 $ 92,000 $ 309,600 6 S 7 *** 15 Expected Activity 12,000 MHS 280 setups 2 products 2,000 DLHS of 15 ‒‒‒ Help Next > Save

Chapter Four Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Required information 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: Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Activity rate Number of setups Number of products Direct labor-hours Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 5. What is the activity rate for the Product Design activity cost pool? per product Saved < Prev 5 Estimated Overhead Cost $ 249,600 $ 162,400 $ 92,000 $ 309,600 6 S 7 *** 15 Expected Activity 12,000 MHS 280 setups 2 products 2,000 DLHS of 15 ‒‒‒ Help Next > Save

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 3PB: Activity-based department rate product costing and product cost distortions Big Sound Inc....
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- Chapter Four Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Required information 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: Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity rate Saved Product Y Product Z 8,800 3,200 240 40 1 1 8,800 3,200 5. What is the activity rate for the Product Design activity cost pool? per product < Prev Estimated Overhead Cost $ 249,600 $ 162,400 $ 92,000 $ 309,600 5 6 S₁ 7 15 Expected Activity 12,000 MHS 280 setups 2 products 12,000 DLHS of 15 ‒‒‒ Help Next > Save
Transcribed Image Text:- Chapter Four Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machining Required information 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: Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Activity rate Saved Product Y Product Z 8,800 3,200 240 40 1 1 8,800 3,200 5. What is the activity rate for the Product Design activity cost pool? per product < Prev Estimated Overhead Cost $ 249,600 $ 162,400 $ 92,000 $ 309,600 5 6 S₁ 7 15 Expected Activity 12,000 MHS 280 setups 2 products 12,000 DLHS of 15 ‒‒‒ Help Next > Save
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Total production design cost = $92,000 

Estimated number of products = 2 products 

Activity rate for product design cost pool = ? 

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