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: Estimated Overhead Expected Activity Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Cost Number of setups Number of products Direct labor-hours $ 206,000 $ 145,600 $ 90,000 $ 307, 200 10, еее мнs 260 setups 2 products 12, 000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y Product Z 8,600 1,400 50 210 1 8,600 3,400
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: Estimated Overhead Expected Activity Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Cost Number of setups Number of products Direct labor-hours $ 206,000 $ 145,600 $ 90,000 $ 307, 200 10, еее мнs 260 setups 2 products 12, 000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y Product Z 8,600 1,400 50 210 1 8,600 3,400
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 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:
Estimated
Overhead
Activity Cost Pool
Machining
Machine setups
Production design
General factory
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Expected
Activity
10,еее мнs
260 setups
Cost
$ 206, 000
$ 145,600
2$
90,000
$ 307, 200
2 products
12,000 DLHS
Activity Measure
Machining
Number of setups
Product Y
Product Z
8,600
1,400
50
210
Number of products
Direct labor-hours
1
1
8,600
3,400
Transcribed Image Text:2. What is the company's total amount of common fixed expenses?
Total common fixed expenses
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