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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 $ 238,800 12,000 MHs
Machine setups Number of setups $ 93,100 190 setups
Production design Number of products $ 83,000 2 products
General factory Direct labor-hours $ 373,500 15,000 DLHs

Activity Measure Product Y Product Z
Machining 7,900 4,100
Number of setups 40 150
Number of products 1 1
Direct labor-hours 7,900 7,100

Required:

1. What is the companys plantwide overhead rate?

2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?

3. What is the activity rate for the Machining activity cost pool?

4. What is the activity rate for the Machine Setups activity cost pool?

5. What is the activity rate for the Product Design activity cost pool?

6. What is the activity rate for the General Factory activity cost pool?

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) Machining activity

C) Machine setups activity

D) Product design activity

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

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