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Greenwood Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct

Greenwood Company manufactures two products13,000 units of Product Y and 5,000 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

$

249,600

12,000

MHs

Machine setups

Number of setups

$

162,400

280

setups

Production design

Number of products

$

92,000

2

products

General factory

Direct labor-hours

$

309,600

12,000

DLHs

Activity Measure

Product Y

Product Z

Machining

7,800

4,200

Number of setups

40

240

Number of products

1

1

Direct labor-hours

8,800

3,200

1.

What is the companys plantwide overhead rate? (Round your answer to 2 decimal places.)

Predetermined overhead rate_____ per DLH

2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

Manufacturing overhead allocated: Product Y _______ Product Z____________

3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)

Activity rate________ per MH

4. What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)

Activity rate _______ per set up

5. What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)

Activity rate ________ per set up

6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

Activity rate _________ per DHL

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

a. Machining activity

b. General factory activity

c. Product design activity

d. Machine setups activity

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

a. General factory activity

b. Product design activity

c. Machining activity

d. Machine setups

9.

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)

Total Manufacturing overhead costs:_______

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)

Total Manufacturing overhead costs__________

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.)

Total Overhead costs: Product Y _____ % Product Z_____%

12.

Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

Machine costs Product Y ____% Product Z_____%

13.

Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

Machine set up costs: Product Y _____% Product Z ____%

14.

Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

Product design cost: Product Y ______% Product Z _____%

15 Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

General Factory Costs: Product Y _____% Product Z _____%

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