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Required information 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
Required information 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 Estimated Activity Measure Overhead Cost Machine-hours $ 200,000 Number of setups $ 100,000 Number of products $ 84,000 Direct labor-hours $ 300,000 Expected Activity 10,000 MHs 200 setups 2 products 12,000 DLHS Product Y 8,000 Activity Measure Machining Number of setups Number of products Direct labor-hours 40 Product z 2,000 160 1 3,000 1 9,000 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? Product Y % Product z % Total overhead cost 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 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 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 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
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