Question
Greenwood Company manufactures two products15,000 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 products15,000 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 Activity Measure Estimated Overhead Cost Expected
Activity Machining Machine-hours $ 224,400 11,000 MHs Machine setups Number of setups $ 129,600 240 setups Production design Number of products $ 88,000 2 products General factory Direct labor-hours $ 254,000 10,000 DLHs
Activity Measure Product Y Product Z Machining 8,400 2,600 Number of setups 60 180 Number of products 1 1 Direct labor-hours 8,400 1,600
12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)
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