Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The...
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Greenwood Company manufactures two products-13,000 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 Machining Machine setups Production design General factory Activity Measure Machining Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost Product Y Product Z $ 228,000 $ 40,000 $ 74,000 $ 288,000 Expected Activity 12,000 MHs 100 setups 2 products 12,000 DLHS Number of setups 7,000 40 5,000 60 Number of products Direct labor-hours 1 7,000 1 5,000 Foundational 4-11 (Algo) 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Total overhead cost Product Y Product Z % % Greenwood Company manufactures two products-13,000 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 Machining Machine setups Production design General factory Activity Measure Machining Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost Product Y Product Z $ 228,000 $ 40,000 $ 74,000 $ 288,000 Expected Activity 12,000 MHs 100 setups 2 products 12,000 DLHS Number of setups 7,000 40 5,000 60 Number of products Direct labor-hours 1 7,000 1 5,000 Foundational 4-11 (Algo) 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Total overhead cost Product Y Product Z % %
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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