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Foundational (LO4-1, LO4-2, LO4-3, L04-4) Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide
Foundational (LO4-1, LO4-2, LO4-3, L04-4) 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 Machining Machine setup Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 209,000 $ 171,100 $ 93,000 $ 259,000 Expected Activity 10,000 Mo 290 setups 2 products 10,000 DLHO Nativity Measure Machining Number of setup Number of products Direct labor-hours Product Y 8,900 50 1 8.900 Product z 1,100 240 1,100 Foundational 4-5 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product
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