Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information Greenwood Company manufactures two products15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based
Required information Greenwood Company manufactures two products15,000 units of Product Y and 7,000 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 $ 221,100 $ 107,100 $ 85,000 $ 251,000 Expected Activity 11,000 MHs 210 setups 2 products 10,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,100 50 1 8,100 Product z 2,900 160 1 1,900 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) Answer is complete but not entirely correct. Product Product Z Manufacturing overhead allocated $434,120 $230,080 ! Required information Greenwood Company manufactures two products15,000 units of Product Y and 7,000 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 $ 221,100 $ 107,100 $ 85,000 $ 251,000 Expected Activity 11,000 MHS 210 setups 2 products 10,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,100 50 1 8,100 Product z 2,900 160 1 1,900 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) Activity rate per MH Required information Greenwood Company manufactures two products15,000 units of Product Y and 7,000 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 $ 221,100 11,000 MHS Machine setups Number of setups $ 107,100 210 setups Production design Number of products $ 85,000 2 products General factory Direct labor-hours $ 251,000 10,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,100 50 1 8,100 Product z 2,900 160 1 1,900 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup ! Required information Greenwood Company manufactures two products15,000 units of Product Y and 7,000 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 $ 221,100 $ 107, 100 $ 85,000 $ 251,000 Expected Activity 11,000 MHS 210 setups 2 products 10,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,100 50 1 8,100 Product z 2,900 160 1 1,900 5. What is the activity rate for the Product Design activity cost pool? Activity rate per product Required information Greenwood Company manufactures two products15,000 units of Product Y and 7,000 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 $ 221,100 11,000 MHS Machine setups Number of setups $ 107,100 210 setups Production design Number of products $ 85,000 2 products General factory Direct labor-hours $ 251,000 10,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,100 50 1 8,100 Product z 2,900 160 1 1,900 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.) Product Y 79.00 % Product z 21.00% Machining cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started