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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

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 to
four cost pools. The following additional information is available for the company as a whole and for Products Y an Z:
Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine hours 200,000 10,000 MHs
Machine setups Number of setups 100,000 200 setups
Production design Number of products 84,000 2 Products
General factory Direct labor hours 300,000 12,000 DLHs
Activity Measure Product Y Product Z
Machining 8,000 2,000
Number of setups 40 160
Number of products 1 1
Direct labor hours 9,000 3,000
1. What is the company's plantwide overhead rate?
2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y?
How much is allocated to Product Z?

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