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 10,000 MHS 260 setups 2 products 12,000 DLHS Cost $ 206,000 $ 145,600 $ 90,000 $ 307,200 Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y Product Z 1,400 210 8,600 50 1 1 8,600 3,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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question 8

Required information
Greenwood Company manufactures two products-14,000 units of Product Y and 6,0o00 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
Expected
Activity
10,еее мнs
260 setups
2 products
12,000 DLHS
Activity Measure
Machine-hours
Cost
Number of setups
Number of products
$ 206,000
$ 145,600
$
90,000
$ 307, 200
Direct labor-hours
Activity Measure
Machining
Number of setups
Number of products
Direct labor-hours
Product Y
Product Z
8,600
1,400
50
210
1
1
8,600
3,4ее
Transcribed Image Text:Required information Greenwood Company manufactures two products-14,000 units of Product Y and 6,0o00 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 Expected Activity 10,еее мнs 260 setups 2 products 12,000 DLHS Activity Measure Machine-hours Cost Number of setups Number of products $ 206,000 $ 145,600 $ 90,000 $ 307, 200 Direct labor-hours Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y Product Z 8,600 1,400 50 210 1 1 8,600 3,4ее
8. Which of the four activities is a product-level activity?
Machining activity
General factory activity
Product design activity
Machine setups activity
Transcribed Image Text:8. Which of the four activities is a product-level activity? Machining activity General factory activity Product design activity Machine setups activity
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