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Greenwood Company manufactures two products 1 5 , 0 0 0 units of Product Y and 7 , 0 0 0 units of Product Z

Greenwood Company manufactures two products15,000 units of Product Y and 7,000 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 $ 224,40011,000 MHs
Machine setups Number of setups $ 129,600240 setups
Production design Number of products $ 88,0002 products
General factory Direct labor-hours $ 254,00010,000 DLHs
Activity Measure Product Y Product Z
Machining 8,4002,600
Number of setups 60180
Number of products 11
Direct labor-hours 8,4001,600
5. What is the activity rate for the Product Design activity cost pool?

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