Greenwood Company manufactures two products-14.000 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 Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 200,000 $ 100,000 $ 84,800 $ 300,000 Expected Activity 10,000 MHs 200 setups 2 products 12,800 DLHS Product Z Activity Measure Machining Number of setups Number of products Direct labor-hours 2,082 Product Y 8,000 40 1 9,000 160 1 3,000 Foundational 4-1 Required: 1. What is the company's plantwice overhead rate? Plantwide overhead rate per DLH 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? Product Y Product Z Manufacturing overhead allocated 3. What is the activity rate for the Machining activity cost pool? Activity rate per MH 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product 6. What is the activity rate for the General Factory activity cost pool? Activity rate per DLH 7. Which of the four activities is a batch-level activity? O Product design activity Machine setups activity O Machining activity General factory activity 8. Which of the four activities is a product-level activity? O Machine setups activity O Machining activity O Product design activity O General factory activity 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to product Y? Total manufacturing overhead cost 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Total manufacturing overhead cost 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Product Y % Product Z % Total overhead cost 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Product Y Product z Total overhead cost 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Product Y % Machining cost Product z % 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Product Y Product z % Machine setups cost %1 14. Using the ABC system, what percentage of the Product Design cost is assigned to product Y and Product Z? Product z Product Y % Product design cost % 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? Product z Product Y % General factory cost %
