Required information Foundational (LO4-1, LO4-2, LO4-3, LO4-4) Greenwood Company manufactures two products14,000 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 $ 84,000 $ 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 2 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 Foundational 4-4 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 6. What is the activity rate for the General Factory activity cost pool? Activity rate per DLH Foundational 4-7 7. Which of the four activities is a batch-level activity? O Machine setups activity O General factory activity O Machining activity O Product design activity Foundational 4-8 8. Which of the four activities is a product-level activity? General factory activity O Machine setups activity O Machining activity O Product design activity Foundational 4-9 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Total manufacturing overhead cost Foundational 4-1 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 z Product Y % 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 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 cost 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
