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 1. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) 2. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) 3. What is the activity rate for the Machine Setups activity cost pool?
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 |
1. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)
2. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
3. What is the activity rate for the Machine Setups activity cost pool?
4. What is the activity rate for the Product Design activity cost pool?
5. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
6. Which of the four activities is a batch-level activity? Machining activity, General factory activity, Product design activity, Machine setups activity
7. Which of the four activities is a product-level activity? Machining activity, Machine setups activity, General factory activity, Product design activity
10. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)
11. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)
12. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)
13. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
14. Using the ABC system, what percentage of the General
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
