Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 210,100 $ 45,100 $ 75,000 $ 241,000 Expected Activity 11,000 MH 110 setups 2 products 10,000 DI.HU Activity Cost Pool Machining Machine setup Production design General factory Activity Measure Machining Number of setups Number of products Direct labor-hours Product Product 2 7,100 3,900 60 50 1 1 7,100 2,900 Foundational 4-9 (Algo) 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to product Y? (Round your Intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) Total manufacturing overhead cast 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) 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? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) 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? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Product Y % Product z Machining cost 28 13. Using the ABC system, what percentage of Machine Setups cost is assigned 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 Machine setups cost 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) Product Y Product Product design cost 15. Using the ABC system, what percentage of the General Factory cost is assigned to product Y and Product Z? (Round your Intermediate calculations and final answers to 2 decimal places.) Product Y Product Z General factory cont %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Accounting

Authors: Needles, Powers, crosson

11th Edition

1439037744, 978-1133626985, 978-1439037744

More Books

Students also viewed these Accounting questions

Question

What strategy for LMD is needed during a recession?

Answered: 1 week ago

Question

How can reflection for leaders and managers be implemented?

Answered: 1 week ago