Required information Foundational (LO4-1, LO4-2, LO4-3, L04-4) Greenwood Company manufactures two products--14,000 units of Product Y and 6,000 units of Product Z. The compan 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 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 MHS 200 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,000 40 1 9,000 Product z 2,000 160 1 3,000 Foundational 4-3 3. What is the activity rate for the Machining activity cost pool? Activity rate por MH Foundational (LO4-1, LO4-2, 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 setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 200,000 $ 100,000 $ 84,900 $ 300,000 Expected Activity 10,000 MHS 200 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,000 40 1 9,000 Product z 2,000 160 1 3,000 Foundational 4.4 2 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup Foundational (L04-1, L04-2, LO4-3, 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 Cost Pool Activity Measure Cost Activity Machining Machine hours $ 200,000 10,000 MHS Machine setups Number of setups $ 100,000 200 setups Production design Number of products $ 84,000 2 products General factory Direct labor-hours $ 300,000 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor hours Product 8,000 40 1 9,000 Product Z 2,000 160 1 3,000 Foundational 4-5 7 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product
