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 $ 213,400 $ 61,600 Product Y Product Z 7,400 3,600 60 80 Activity Measure Machining Number of setups Number of products Direct labor-hours 1 1 7,400 2,600 Expected Activity 11,000 MHs 140 setups 2 products $ 78,000 $ 244,000 10,000 DLHS 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 cost 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 $ 213,400 $ 61,600 Product Y Product Z 7,400 3,600 60 80 Activity Measure Machining Number of setups Number of products Direct labor-hours 1 1 7,400 2,600 Expected Activity 11,000 MHs 140 setups 2 products $ 78,000 $ 244,000 10,000 DLHS 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 cost
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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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