Required information Foundational (LO4-1, L04-2, L04-3, L04.4) 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 Cost Pool Machining Machine setup Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 200,000 $ 100,000 $ 84,000 $ 300,000 Expected Activity 10,000 MAH 200 setups 2 products 12,000 DLHS Activity Measure Machining Number of setupa Number of products Direct labor hours Product Y 8.000 40 1 9,000 Product 2.000 160 1 3.000 Foundational 4-2 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? Product Y Product Z Manufacturing overhead allocated Required informaton Foundational (LO4-1, LO4-2, L04-3, LO4-4) 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: Estimated Overhead Expected Activity Control Activity Measure Cont Activity Machining Machine-hours $ 200,000 10,000 MHM Machine setup Number of setups $100,000 200 stup Production design Number of products $ 84,000 2 products General factory Direct labor-hours $ 300,000 12,000 DIN Activity Measure Machining Number of setup Number of products Direct labor-hours Product Y 8,000 40 1 9,000 Product 2,000 160 1 3,000 Foundational 4-3 3. What is the activity rate for the Machining activity cost pool? Activity rate per MH 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup Foundational 4-5 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product Foundational 4-6 5. What is the activity rate for the General Factory activity cost pool? Activity rate per DLH 7. Which of the four activities is a batch-level activity? O Machine setups activity O General factory activity O Product design activity O Machining activity 8. Which of the four activities is a product-level activity? O General factory activity, O Machine setups activity O Product design activity O Machining activity Foundational 4-9 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to product Y? Total manufacturing overhand cost Foundational 4-10 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Total manufacturing overhead cost Foundational 4.11 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Product Product z Total overhead cost Foundational 4-12 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? Product Y 1% Product z % Machining cost Foundational 4.13 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? Product Y Product z % Machine setups cost Foundational 4-14 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? Product Y Product z % Product design cont Foundational 4-15 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? Product Y Product z General factory cost