Question
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:
Active cost pool | Activity measure | Estimated overhead cost | Expected activity |
Machining | Machine-hours | $246,000 | 12,000 MHs |
Machine setups | Number of setups | $137,500 | 250 setups |
Production design | Number of products | $89,000 | 2 products |
General factory | Direct labor-hours | $357,000 | 14,000 DLHs |
Activity Measure | Product Y | Product Z |
Machining | 7,500 | 4,500 |
Number of setups | 40 | 210 |
Number of products | 1 | 1 |
Direct labor-hours | 8,500 | 5,500 |
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.)
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.)
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.)
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.)
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