Question 1-3

GM Company manufactures two products - Product Y and 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	Acitivity Measure	Estimated Overhead Cost	Expected Activity
Machining	Machine-hours	300000	10000	MHs
Machine setups	Number of setups	100000	400	setups
Production design	Number of products	80000	2	products
General factory	Direct labor-hours	450000	15000	DLHs

Activity Measure	Product Y	Product Z
Machining	6000	4000
Number of setups	150	250
Number of products	1	1
Direct labor-hours	9500	5500
Units Produced	20000	8000

Question 1. Using the ABC system, how much total manufacturing overhead cost will be assigned to Product Y and Product Z?

Question 2. Using the plantwide overhead rate, what percentage of the total overhead cost is assigned to Product Y? What percentage is assigned to Product Z?

Question 3. Using the ABC system, what percentage of each of the cost pools is assigned to Product Y?

Product Z?

a. Machining - Product Y :

b. Machine Setup - Product Y :

c. Product Design - Product Y :

d. General Factory- Product Y :

e. Machining - Product Z :

f. Machine Setup - Product Z :

g.Product Design - Product Z :

h.General Factory - Product Z :