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 What is the activity rate for the Product Design activity cost pool? What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Which of the four activities is a batch-level activity?
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 What is the activity rate for the Product Design activity cost pool? What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) Which of the four activities is a batch-level activity?
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 |
What is the activity rate for the Product Design activity cost pool?
What is the activity rate for the General
Which of the four activities is a batch-level activity?
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