2-1

Greenwood Company manufactures two products14,000 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	$	195,000			10,000	MHs
Machine setups	Number of setups	$	67,500			150	setups
Production design	Number of products	$	79,000			2	products
General factory	Direct labor-hours	$	245,000			10,000	DLHs

Activity Measure	Product Y			Product Z
Machining		7,500			2,500
Number of setups		50			100
Number of products		1			1
Direct labor-hours		7,500			2,500

Required:

What is the companys plantwide overhead rate? (Round your answer to 2 decimal places.)