Question
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 | $ | 231,000 | 11,000 | MHs |
Machine setups | Number of setups | $ | 180,000 | 300 | setups |
Production design | Number of products | $ | 94,000 | 2 | products |
General factory | Direct labor-hours | $ | 260,000 | 10,000 | DLHs |
Activity Measure | Product Y | Product Z |
Machining | 8,000 | 3,000 |
Number of setups | 60 | 240 |
Number of products | 1 | 1 |
Direct labor-hours | 9,000 | 1,000 |
1.
value: 10.00 points
Required information
Required: |
1. | What is the companys plantwide overhead rate? (Round your answer to 2 decimal places.) |
2.
value: 10.00 points
Required information
2. | Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
3.
value: 10.00 points
Required information
3. | What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) |
4.
value: 10.00 points
Required information
4. | What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.) |
5.
value: 10.00 points
Required information
5. | What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.) |
6.
value: 10.00 points
Required information
6. | What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) |
7.
value: 10.00 points
Required information
7. | Which of the four activities is a batch-level activity? | ||||||||
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8.
value: 10.00 points
Required information
8. | Which of the four activities is a product-level activity? | ||||||||
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9.
value: 10.00 points
Required information
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 and final answer to the nearest dollar amount.) |
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10.
value: 10.00 points
Required information
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 and final answer to the nearest dollar amount.) |
11.
value: 10.00 points
Required information
12.
value: 10.00 points
Required information
12. | Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
13.
value: 10.00 points
Required information
13. | Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
14.
value: 10.00 points
Required information
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.) |
15.
value: 10.00 points
Required information
15. | Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
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