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Required information Foundational (Algo) [LO4-1, LO4-2, LO4-3, LO4-4] Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 units of Product Z. The
Required information Foundational (Algo) [LO4-1, LO4-2, LO4-3, LO4-4] Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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 Machining Machine setups Production design General factory Activity Measure Machining Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 246,000 Product Y Product Z 8,500 40 3,500 210 1 1 8,500 5,500 $ 137,500 $ 89,000 $ 357,000 Expected Activity 12,000 MHS 250 setups 2 products 14,000 DLHS
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