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 PoolActivity MeasureEstimated Overhead CostExpected ActivityMachiningMachine-hours$ 192,00010,000MHsMachine setupsNumber of setups$ 50,400120setupsProduction designNumber of products$ 76,0002productsGeneral factoryDirect labor-hours$ 387,20016,000DLHs Activity MeasureProduct YProduct ZMachining7,2002,800Number of setups5070Number of products11Direct labor-hours7,2008,800Which of the four activities is a product-level activity?multiple choiceMachining activityMachine setups activityGeneral factory activityProduct design activity Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)

The overhead is assigned to the production on the basis of the pre-determined overhead rates. The…

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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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

Which of the four activities is a product-level activity?

multiple choice

Machining activity
Machine setups activity
General factory activity
Product design activity

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)

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