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 Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 242,400 $ 114,400 $ 86,000 $ 302,400 Expected Activity 12,000 MHs 220 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,200 40 Product z 3,800 180 1 1 8,200 3,800 What is the activity rate for the Product Design activity cost pool? ctivity rate per product
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 Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 242,400 $ 114,400 $ 86,000 $ 302,400 Expected Activity 12,000 MHs 220 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,200 40 Product z 3,800 180 1 1 8,200 3,800 What is the activity rate for the Product Design activity cost pool? ctivity rate per product
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 2PA: The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the...
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![Requlred Informatlon
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
Machine-hours
Number of setups
Number of products
Direct labor-hours
Estimated
Overhead
Cost
$ 242,400
$ 114,400
$ 86,000
$ 302,400
Expected
Activity
12,000 MHs
220 setups
2 products
12,000 DLHS
Activity Measure
Machining
Number of setups
Number of products
Direct labor-hours
Product Y
8,200
40
Product Z
3,800
180
8,200
3,800
What is the activity rate for the Product Design activity cost pool?
Activity rate
per product
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5 6
7.
15
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Transcribed Image Text:Requlred Informatlon
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
Machine-hours
Number of setups
Number of products
Direct labor-hours
Estimated
Overhead
Cost
$ 242,400
$ 114,400
$ 86,000
$ 302,400
Expected
Activity
12,000 MHs
220 setups
2 products
12,000 DLHS
Activity Measure
Machining
Number of setups
Number of products
Direct labor-hours
Product Y
8,200
40
Product Z
3,800
180
8,200
3,800
What is the activity rate for the Product Design activity cost pool?
Activity rate
per product
< Prev
5 6
7.
15
of 15
xt >
92°F AQI 61
to search
DELL
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