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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:
\begin{tabular}{llrr} Activity Cost Pool & \multicolumn{1}{c}{ Activity Measure } & EstimatedOverheadCost & Expected Activity \\ Machining & Machine-hours & $242,400 & 12,000 MHs \\ Machine setups & Number of setups & $114,400 & 220 setups \\ Production design & Number of products & $86,000 & 2 products \\ General factory & Direct labor-hours & $302,400 & 12,000 DLHs \\ & & & \\ Activity Measure & Product Y Product Z \\ Machining & 8,200 & 3,800 \\ Number of setups & 40 & 180 \\ Number of products & 1 & 1 & \\ Direct labor-hours & 8,200 & 3,800 \end{tabular} 1. What is the company's plantwide overhead rate?
2. Using the plantwide overhead rate, how much manufacturing overhead costs 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?
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