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What is activity rate for product design activity cost pool

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Reference no: EM132500183

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 Activity Measure           Estimated Overhead Cost Expected

                                                                               Activity   Machining

Machine-hours$209,000       10,000MHs

Machine setupsNumber of setups   $171,100  290setups

Production designNumber of products   $93,000   2products

General factoryDirect labor-hours         $259,000   10,000DLHs

Activity Measure                           Product Y                  Product Z

Machining                                   8,900                       1,100

Number of setups                              50                      240

Number of products                               1                    1

Direct labor-hours                        8,900                     1,100

Question 1: What is the activity rate for the Product Design activity cost pool?

Question 2: What is the activity rate for the General Factory activity cost pool?

Question 3: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?

Question 4: Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

Question 5: Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

Question 6: Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?

Question 7: Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?

Question 8: Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

Question 9: Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

Reference no: EM132500183

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