Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Foundational ( Algo ) [ LO 4 - 1 , LO 4 - 2 , LO 4 - 3 , LO 4 -

Required information
Foundational (Algo)[LO4-1, LO4-2, LO4-3, LO4-4]
Skip to 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 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 $ 210,10011,000 MHs
Machine setups Number of setups $ 45,100110 setups
Production design Number of products $ 75,0002 products
General factory Direct labor-hours $ 241,00010,000 DLHs
Activity Measure Product Y Product Z
Machining 7,1003,900
Number of setups 6050
Number of products 11
Direct labor-hours 7,1002,900
Foundational 4-1(Algo)
Required:
1. What is the companys plantwide overhead rate?
Note: Round your answer to 2 decimal places.
2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z?
Note: Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.
3. What is the activity rate for the Machining activity cost pool?
Note: Round your answer to 2 decimal places.
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?
Note: Round your answer to 2 decimal places.
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?
Note: Round your intermediate calculations to 2 decimal places. Round your answer to the nearest dollar amount.
10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?
Note: Round your intermediate calculations to 2 decimal places. Round your answer to the nearest dollar amount.
11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?
Note: Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.Item10
Part 10 of 13
12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?
Note: Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.
13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?
Note: Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.
14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
Note: Round your answers to 2 decimal places.
15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?
Note: Round your intermediate calculations and final answers to 2 decimal places.

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_2

Step: 3

blur-text-image_3

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

Accounting

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

23rd Edition

978-0324662962

More Books

Students also viewed these Accounting questions

Question

=+ c. How would the change you describe in part

Answered: 1 week ago