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:
Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | |
---|---|---|---|---|
Machining | Machine-hours | $ 235,200 | 12,000 | MHs |
Machine setups | Number of setups | $ 73,600 | 160 | setups |
Production design | Number of products | $ 80,000 | 2 | products |
General factory | Direct labor-hours | $ 295,200 | 12,000 | DLHs |
Activity Measure | Product Y | Product Z |
---|---|---|
Machining | 7,600 | 4,400 |
Number of setups | 40 | 120 |
Number of products | 1 | 1 |
Direct labor-hours | 7,600 | 4,400 |
13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. 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 intermediate calculations and final answers to 2 decimal places.)
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