$14$

$!$

Required information

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 $Z$ :

$\backslash$table$[[$Activity cost Pool,Activity Measure,$\backslash$table$[[$Estimated$],[$Overhead Cost$]],$Expected Activity$],[$Machining$,$Machine$-$hours,$$200,000,10,000$ MHs$],[$Machine setups,Number of setups,$$100,000,200$ setups$],[$Production design,Number of products,$$84,000,2$ products$],[$General factory,Direct labor$-$hours,$$300,000,12,000$ DLHs$]]$

$\backslash$table$[[$Activity Measure,Product Y$,$Product Z$],[$Machining$,8,000,2,000],[$Number of setups,$40,160],[$Number of products,$1,1],[$Direct labor$-$hours,$9,000,3,000]]$

Using the ABC system, what percentage of the Product Design cost is assigned to Product $Y$ and Product $Z?$

References

$\backslash$table$[[,$Product $Y,$Product Z$],[$Product design cost,,$\%$