Foundational [LO3-1, LO3-2, LO3-3, LO3-4]

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 PoolActivity MeasureEstimated Overhead CostExpected ActivityMachiningMachine-hours$200,00010,000MHsMachine setupsNumber of setups$100,000200setupsProduction designNumber of products$84,0002productsGeneral factoryDirect labor-hours$300,00012,000DLHs

Activity MeasureProduct YProduct ZMachining8,0002,000Number of setups40160Number of products11Direct labor-hours9,0003,000

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Section BreakFoundational [LO3-1, LO3-2, LO3-3, LO3-4]

1.

Award:1 out of 1.00 point

Foundational 3-1

Required:1.What is the company's plantwide overhead rate?

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WorksheetFoundational 3-1

2.

Award:0 out of 1.00 point

Foundational 3-2

2.Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

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WorksheetFoundational 3-2

3.

Award:1 out of 1.00 point

Foundational 3-3

3.What is the activity rate for the Machining activity cost pool?

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WorksheetFoundational 3-3

4.

Award:1 out of 1.00 point

Foundational 3-4

4.What is the activity rate for the Machine Setups activity cost pool?

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WorksheetFoundational 3-4

5.

Award:1 out of 1.00 point

Foundational 3-5

5.What is the activity rate for the Product Design activity cost pool?

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WorksheetFoundational 3-5

6.

Award:1 out of 1.00 point

Foundational 3-6

6.What is the activity rate for the General Factory activity cost pool?

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WorksheetFoundational 3-6

7.

Award:1 out of 1.00 point

Foundational 3-7

7.Which of the four activities is a batch-level activity?Machine setups activityReferences

WorksheetFoundational 3-7

8.

Award:1 out of 1.00 point

Foundational 3-8

8.Which of the four activities is a product-level activity?Product design activityReferences

WorksheetFoundational 3-8

9.

Award:0 out of 1.00 point

Foundational 3-9

9.Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?

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WorksheetFoundational 3-9

10.

Award:0 out of 1.00 point

Foundational 3-10

10.Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

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WorksheetFoundational 3-10

11.

Award:0 out of 1.00 point

Foundational 3-11

11.Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

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WorksheetFoundational 3-11

12.

Award:0 out of 1.00 point

Foundational 3-12

12.Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?

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WorksheetFoundational 3-12

13.

Award:0 out of 1.00 point

Foundational 3-13

13.Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?

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WorksheetFoundational 3-13

14.

Award:1 out of 1.00 point

Foundational 3-14

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

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WorksheetFoundational 3-14

15.

Award:0 out of 1.00 point

Foundational 3-15

15.Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

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WorksheetFoundational 3-15