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2-13 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

2-13

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

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.)

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