Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

11.Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

12.Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Z?

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Z?

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Z?

15.Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Z?

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

Auditing Principles Techniques And Practices

Authors: Mustaq Ahmad, Mohd Ashraf Ali

1st Edition

8184841949, 978-8184841947

More Books

Students also viewed these Accounting questions

Question

Distinguish the difference between a prototype and a concept.

Answered: 1 week ago

Question

What were your most important educational experiences?

Answered: 1 week ago

Question

Which personal relationships influenced you the most?

Answered: 1 week ago