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 PoolActivity MeasureEstimated Overhead CostExpected Activity Machining Machine-hours$200,000 10,000 MHs Machine setups Number of setups$100,000 200 setups Production design Number of products$84,000 2 products General factory Direct labor-hours$300,000 12,000 DLHs Activity MeasureProduct YProduct Z Machining8,000 2,000 Number of setups40 160 Number of products.

1.Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?