Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z. The...
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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 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 Product Y Product Z $ 213,400 Expected Activity 11,000 MHs 140 setups 2 products $ 61,600 $ 78,000 $ 244,000 10,000 DLHS Activity Measure Machining Number of setups 7,400 60 3,600 80 Number of products 1 1 Direct labor-hours 7,400 2,600 Foundational 4-12 (Algo) 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.) Machining cost Product Y Product Z % % 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 Estimated Overhead Cost Product Y Product Z $ 213,400 Expected Activity 11,000 MHs 140 setups 2 products $ 61,600 $ 78,000 $ 244,000 10,000 DLHS Activity Measure Machining Number of setups 7,400 60 3,600 80 Number of products 1 1 Direct labor-hours 7,400 2,600 Foundational 4-12 (Algo) 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.) Machining cost Product Y Product Z % %
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Related Book For
Introduction to Managerial Accounting
ISBN: 978-0078025792
7th edition
Authors: Peter Brewer, Ray Garrison, Eric Noreen
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