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What percentage of machine setups cost is assign to product

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Reference no: EM132633235

The 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          $203,000         10,000     MHs

Machine setups     Number of setups     $121,900           230         setups

Production design  Number of products   $87,000             2           products

General factory     Direct labor-hours        $379,500        15,000        DLHs

Activity Measure             Product Y                  Product Z

Machining                         8,300                     1,700

Number of setups                50                      180

Number of products                   1                        1

Direct labor-hours                9,500                      5,500

Question 1: Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)

Reference no: EM132633235

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