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 Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 192,000 10,000 MHs Machine setups Number of setups $ 50,400 120 setups Production design Number of products $ 76,000 2 products General factory Direct labor-hours $ 387,200 16,000 DLHs Activity Measure Product Y Product Z Machining 7,200 2,800 Number of setups 50 70 Number of products 1 1 Direct labor-hours 7,200 8,800 Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.)
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 Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 192,000 10,000 MHs Machine setups Number of setups $ 50,400 120 setups Production design Number of products $ 76,000 2 products General factory Direct labor-hours $ 387,200 16,000 DLHs Activity Measure Product Y Product Z Machining 7,200 2,800 Number of setups 50 70 Number of products 1 1 Direct labor-hours 7,200 8,800 Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $ 192,000 | 10,000 | MHs |
| Machine setups | Number of setups | $ 50,400 | 120 | setups |
| Production design | Number of products | $ 76,000 | 2 | products |
| General factory | Direct labor-hours | $ 387,200 | 16,000 | DLHs |
| Activity Measure | Product Y | Product Z |
|---|---|---|
| Machining | 7,200 | 2,800 |
| Number of setups | 50 | 70 |
| Number of products | 1 | 1 |
| Direct labor-hours | 7,200 | 8,800 |
Using the ABC system, what percentage of the General
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