Requlred InformatlonGreenwood 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 andZ:Activity Cost PoolMachiningMachine setupsProduction designGeneral factoryActivity MeasureMachine-hoursNumber of setupsNumber of productsDirect labor-hoursEstimatedOverheadCost$ 242,400ॐ 114,48886,000$302,400ExpectedActivity12,000 MHs220 setups2 products12,000 DLHSActivity MeasureMachiningNumber of setupsNumber of productsDirect labor-hours.Product Y8,200401.8,200Product Z3,8001801.3,80011. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Roundyour Intermedlate calculations to 2 declmal places. Round your answers to 2 decimal ploces.)Product YProduct ZTotal overhead cost<.Prev11121315of 15Next其其re to searchDELL道

Overhead rate is the total of all indirect costs or expenses which are then divided by the activity…

Answered: Greenwood Company manufactures two…

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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XYZ Co has an activity-based costing system with three activity cost pools--Fixing, Cutting, and Other. In the first stage allocations, costs in the two overhead accounts, equipment depreciation and factory expense, are allocated to three activity cost pools based on resource consumption. Data used in the first stage allocations follow: Overhead costs: Factory depreciation $79,600 Indirect labor $5,000 Distribution of Resource Consumption Across Activity Cost Pools: Activity Cost Pools Fixing Cutting Other Equipment depreciation 0.50 0.30 0.20 Factory expense 0.50 0.30 0.20 Fixing costs are assigned to products using machine-hours (MHs) and Cutting costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow: Machine-hours (Fixing) Orders (Cutting) Product A 1,550 1,070 Product B 9,700 1,630 The activity rate for the Fixing activity cost pool under…
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $24.82 per unit, while product B has been assigned $13.58 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information: Cost Pools Activity Costs Cost Drivers Activity Driver Consumption Machine setup $ 158,000 Setup hours 2,000 Materials handling 112,000 Pounds of materials 16,000 Electric power 25,000 Kilowatt-hours 25,000 The following cost information pertains to the production of A and B, just two of Hakara's many products: A B Number of units produced 5,000 10,000 Direct materials cost $ 32,000 $ 41,000 Direct labor cost $ 41,000 $ 38,000 Number of setup hours 100 200 Pounds of materials used 1,000 1,000 Kilowatt-hours 2,000 4,000 Required: 1. Use…
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 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 $ 231,000 11,000 MHs Machine setups Number of setups $ 180,000 300 setups Production design Number of products $ 94,000 2 products General factory Direct labor-hours $ 260,000 10,000 DLHs Activity Measure Product Y Product Z Machining 9,000 2,000 Number of setups 60 240 Number of products 1 1 Direct labor-hours 9,000 1,000 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and…
Sabby Industries has three activity cost pools and two products. It expects to produce 2,900 units of Product S209 and 1.200 of Product NZ16. Having identified its activity cost pools and the cost drivers for each pool, Sabby accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pool Machine set-ups Assembling Inspection (a) Cost Driver Assembling Set-ups Machine hours Calculate the overhead rates. Inspection Inspections Machine set-ups $ $ Estimated Overhead $78,660 323,000 6,400 Estimated Use of Cost Drivers per set-up 190 per inspection 17,000 100 per machine hour 5709 NZ16 130 10,100 60 60 6,900 40
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 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 $ 227,700 11,000 MHs Machine setups Number of setups $ 153,900 270 setups Production design Number of products $ 91,000 2 products General factory Direct labor-hours $ 257,000 10,000 DLHs Activity Measure Product Y Product Z Machining 8,700 2,300 Number of setups 60 210 Number of products 1 1 Direct labor-hours 8,700 1,300 7. Which of the four activities is a batch-level activity? multiple choice Machining activity General…
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 OWS KTOP- Ows Activity Measure Machining Number of setups Number of products Direct labor-hours Total manufacturing overhead cost +1 (252) 484-2153 Oh nun Activity Measure Machine-hours. Number of setups Number of products Direct labor-hours FEB 22 Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 NT Submit Check my work A O
In Class Assignment 1 AlSaleh has assigned overhead on a plantwide basis to its two products (Tables and Chairs) using direct labor hours which are estimated to be 200,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are Ordering and receiving (cost driver is Purchase orders) and machine setup (cost driver is number of setups). Overhead allocated to the ordering and receiving cost pool is $200,000, and $800,000 is allocated to the machine setup cost pool. Additional information related to these pools is as follows: Cost Drivers Tables Chairs Purchase orders 30,000 10,000 number of setups 10,000 30,000 a. Determine the amount of overhead assigned to the table product line and the chairs product line using activity-based costing. b. What amount of overhead would be assigned to the tables and chairs product lines using the traditional approach,…
Pronghorn Industries has three activity cost pools and two products. It estimates production 2,000 units of Product BC113 and 1,000 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Pronghorn accumulated the following data relative to those activity cost pools and cost drivers. Activity Cost Pools Machine setup Machining Packing (a) Annual Overhead Data Activity Cost Pools Machine setup Using the above data, do the following: Machining Packing Cost Drivers $ Setups $ Machine hours Orders Estimated Overhead Estimated Overhead $17,500 120,750 28,670 Use of Cost Drivers per Product Estimated Use of Cost Drivers per Activity 35 Prepare a schedule showing the computations of the activity-based overhead rates per cost driver. 4,830 470 Estimated Use of Cost Drivers per Activity setups machine hours Product BC113 orders 20 1,140 120 $ $ $ Product AD908 15 3,690 350 Activity-Based Overhead Rates per setup per machine hr. per order
Foam Products, Incorporated, makes foam seat cushions for the automotive and aerospace industries. The company’s activity-based costing system has four activity cost pools, which are listed below along with their activity measures and activity rates: Activity Cost Pool Activity Measure Activity Rate Supporting direct labor Number of direct labor-hours $ 14 per direct labor-hour Batch processing Number of batches $ 90 per batch Order processing Number of orders $ 287 per order Customer service Number of customers $ 2,608 per customer The company just completed a single order from Interstate Trucking for 2,900 custom seat cushions. The order was produced in three batches. Each seat cushion required 0.4 direct labor-hour. The selling price was $142.30 per unit, the direct materials cost was $110 per unit, and the direct labor cost was $14.40 per unit. This was Interstate Trucking’s only order during the year. Required: Calculate the customer margin for Interstate Trucking.
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 TOP- OWS Activity Measure Machining Number of setups Number of products Direct labor-hours Machining cost Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y +1 (252) 484-2153 Oh nun % Product Y Product Z 8,800 3,200 40 240 1 1 8,800 3,200 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your in calculations to 2 decimal places. Round your answers to 2 decimal places.) Product Z
In October, A. Nguyen established an apartment rental service account headings are presented below Transactions completed during the month October follow. a Nguyen deposited $25,000 in a bank account in the name of the business. b Paid the rent for the month, $1,200, Ck. No, 2015. c Bought supplies on account, $225. d Bought a truck for $18,000 paying $1,000 in cash and placing the remainder on account. e Bought insurance for the truck for the year, $1,400, Ck. No. 2016. f Sold services on account, $5,000. g Bought office equipment on account from Henry Office Supply, $2,300. h Sold services for cash for the first half of the month, $6,050. iReceived and paid the bill for utilities, $150, Ck No. 2017. j Received a bill for gas and oil for the truck, $80. k Paid wages to the employees, $1,400, Ck. Nos. 2018—2020. Sold services for cash for the remainder of the month, $4,200. Nguyen withdrew cash for personal use, $2,000, Ck. No. 2021.…
! Required information [The following information applies to the questions displayed below.] Hickory 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 labour-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: Machining Machine setups Product design General factory Activity Measure Machine-hours Number of setups. Number of products Direct labour-hours Activity Measure Machine-hours Number of setups Number of products Direct labour-hours Total manufacturing overhead cost Product Y 6,500 50 7,500 Estimated Overhead Cost $195,000 $67,500 $ 79,000 $245,000 Product Z 3,500 100 1 4,500 Expected Activity 10,000 MH 150 setups 2 products 12,000 DLHS Required: Using the ABC system, how much total…

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