Reference no: EM132471743
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 10,000 MHs
Machine setups Number of setups $ 171,100 290 setups
Production design Number of products $ 93,000 2 products
General factory Direct labor-hours $ 259,000 10,000 DLHs
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
Required:
Question 1. What is the company's plantwide overhead rate? (Round your answer to 2 decimal places.)
Question 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.)
Question 3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
Question 4. What is the activity rate for the Machine Setups activity cost pool?
Question 5. What is the activity rate for the Product Design activity cost pool?
Question 6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
Question 7. Which of the four activities is a batch-level activity?
- Machining activity
- General factory activity
- Product design activity
- Machine setups activity
Question 8. Which of the four activities is a product-level activity?
- Machining activity
- Product design activity
- Machine setups activity
- General factory activity
Question 9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)
Question 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)
Question 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)
Question 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.)
Question 13. 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.)
Question 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
Question 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.)