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 Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 209,000 10,000 MHs Machine setups Number of setups $ 171,100 290 setups Production design Number of products $ 93,000 2 products General factory Direct labor-hours $ 259,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,900 1,100 Number of setups 50 240 Number of products 1 1 Direct labor-hours 8,900 1,100 Foundational 4-3 (Algo) 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
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 Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 209,000 10,000 MHs Machine setups Number of setups $ 171,100 290 setups Production design Number of products $ 93,000 2 products General factory Direct labor-hours $ 259,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,900 1,100 Number of setups 50 240 Number of products 1 1 Direct labor-hours 8,900 1,100 Foundational 4-3 (Algo) 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | |
|---|---|---|---|---|
| Machining | Machine-hours | $ 209,000 | 10,000 | MHs |
| Machine setups | Number of setups | $ 171,100 | 290 | setups |
| Production design | Number of products | $ 93,000 | 2 | products |
| General factory | Direct labor-hours | $ 259,000 | 10,000 | DLHs |
| Activity Measure | Product Y | Product Z |
|---|---|---|
| Machining | 8,900 | 1,100 |
| Number of setups | 50 | 240 |
| Number of products | 1 | 1 |
| Direct labor-hours | 8,900 | 1,100 |
Foundational 4-3 (Algo)
3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
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