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?

1. Machining activity
2. General factory activity
3. Product design activity
4. Machine setups activity

Question 8. Which of the four activities is a product-level activity?

1. Machining activity
2. Product design activity
3. Machine setups activity
4. 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.)