Homework SoursePLEASE ANSWER ALL QUESTIONS Greenwood Company manufactures t
PLEASE ANSWER ALL QUESTIONS!
Greenwood Company manufactures two products—15,000 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:
Required information
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
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8.
value:
10.00 points
Required information
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
9.
value:
10.00 points
Required information
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
10.
value:
10.00 points
Required information
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
11.
value:
10.00 points
Required information
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.)
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
12.
value:
10.00 points
Required information
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
13.
value:
10.00 points
Required information
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
14.
value:
10.00 points
Required information
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.)
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
15.
value:
10.00 points
Required information
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
| PLEASE ANSWER ALL QUESTIONS! Greenwood Company manufactures two products—15,000 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: |
Solution
7 Which of the four activities is a batch-level activity? NO Machining activity No General factory activity NO Product design activity YES Machine setups activity Activity is performed for a batch of output 8 Which of the four activities is a product-level activity? NO Machining activity NO Machine setups activity YES Product design activity This is an activity in support of specific product irrespective of volume of output NO General factory activity 9 A B C=A/B Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity RATE Machining Machine-hours $ 231,000 11,000 MHs 21 Machine setups Number of setups $ 180,000 300 setups 600 Production design Number of products $ 94,000 2 products 47000 General factory Direct labor-hours $ 260,000 10,000 DLHs 26 Total 765000 D E F=D*E Activity Measure Product Y RATE Activity cost Machining 8,000 $ 21.00 $ 168,000 Number of setups 60 $ 600.00 $ 36,000 Number of products 1 $ 47,000.00 $ 47,000 Direct labor-hours 9,000 $ 26.00 $ 234,000 TOTAL Activity based cost $ 485,000 Total manufacturing overhead cost would be assigned to Product Y $ 485,000 10 D E F=D*E Activity Measure Product Z RATE Activity cost Machining 3,000 $ 21.00 $ 63,000 Number of setups 240 $ 600.00 $ 144,000 Number of products 1 $ 47,000.00 $ 47,000 Direct labor-hours 1,000 $ 26.00 $ 26,000 TOTAL Activity based cost $ 280,000 Total manufacturing overhead cost would be assigned to Product Z $ 280,000 11 Total overhead cost $ 765,000 (485000+280000) Total direct labor hours 10000 Plant wide overhead rate $ 76.50 (765000/10000) Overhead allocated to Y $ 688,500 (9000*76.5) Overhead allocated to Z $ 76,500 (1000*76.5) Percentage allocated to Y 90% (688500/765000)*100 Percentage allocated to Z 10% (76500/765000)*101 12 Machining Cost assigned to Y $ 168,000 Machining Cost assigned to Z $ 63,000 Percentage allocated to Y 73% (168000/231000)*100 Percentage allocated to Z 27% (63000/231000)*101
