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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 $ 216,700 11,000 MHs Machine setups Number of setups $ 79,900 170 setups Production design Number of products $ 81,000 2 products General factory Direct labor-hours $ 247,000 10,000 DLHs Activity Measure Product Y Product Z Machining 7,700 3,300 Number of setups 60 110 Number of products 1 1 Direct labor-hours 7,700 2,300 Foundational 4-7 7.

Which of the four activities is a batch-level activity?

Machining activity

General factory activity

Product design activity

Machine setups activity

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