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Please help me answer #10. Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide
Please help me answer #10.
Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 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 Measure Activity Cost Pool Machining Machine setups Production design General factory Estimated Overhead Cost $200,000 $100,000 Machine-hours Number of setups Number of products Direct labor-hours Expected Activity 10,000 MHs 200 setups 2 products $84,000 $300,000 12,000 DLHs Product Y Product z 8,000 2,000 Activity Measure Machining Number of setups Number of products Direct labor-hours 40 160 1 1 9,000 3,000 1. What is the company's plantwide overhead rate? 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y? How much is allocated to Product Z? 3. What is the activity rate for the Machining activity cost pool? 4. What is the activity rate for the Machine Setups activity cost pool? 5. What is the activity rate for the Product Design activity cost pool? 6. What is the activity rate for the General Factory activity cost pool? 7. Which of the four activities is a batch-level activity? Why? 8. Which of the four activities is a product-level activity? Why? 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Page 176Step by Step Solution
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