Question
Foundational (Static) [LO4-1, LO4-2, LO4-3, LO4-4] Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses
Foundational (Static) [LO4-1, LO4-2, LO4-3, LO4-4] 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 setups Production design General factory Activity Measure Machining Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Product Y 8,000 40 1 Number of setups Number of products Direct labor-hours 9,000 Estimated Overhead Cost $ 200,000 $ 100,000 $ 84,000 $ 300,000 Product Z 2,000 160 1 3,000 Expected Activity 10,000 MHS 200 setups 2 products 12,000 DLHS Foundational 4-1 (Static) Required: 1. What is the company's plantwide overhead rate? Plantwide overhead rate per DLH
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