Question
Greenwood Company manufactures two products14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct
Greenwood Company manufactures two products14,000 units of Product Y and 6,000 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 $ 203,000 10,000 MHs
Machine setups Number of setups $ 121,900 230 setups
Production design Number of products $ 87,000 2 products
General factory Direct labor-hours $ 379,500 15,000 DLHs
Activity Measure Product Y Product Z
Machining 7,300 2,700
Number of setups 50 180
Number of products 1 1
Direct labor-hours 9,500 5,500
1. | )What is the companys plantwide overhead rate? (Round your answer to 2 decimal places.) | |||||||
Per DLH
|
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