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Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct
Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 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 Activity Measure Machining Number of setups: Number of products Direct labor-hours Estimated Overhead Cost $231,000 Expected Activity 11,000 MHS $ 180,000 $ 94,000 $ 260,000 300 setups 2 products 10,000 DLHS Product Y Product Z 9,000 60 2,000 240 1 9,000 1 1,000 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.) Product Y Product Z Total overhead cost 81.00 % 19.00 %
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