Question
PLEASE ANSWER ALL QUESTIONS! Greenwood Company manufactures two products15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead
| PLEASE ANSWER ALL QUESTIONS! 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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
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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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
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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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
7.
value: 10.00 points
Required information
| 7. | Which of the four activities is a batch-level activity? | ||||||||
|
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
8.
value: 10.00 points
Required information
| 8. | Which of the four activities is a product-level activity? | ||||||||
|
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
11.
value: 10.00 points
Required information
| 11. | Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
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.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.
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