Greenwood Company manufactures two products15000 units of Pr

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:

  

  

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 and final answers to the nearest dollar amount.)

What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)

What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)

What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)

What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

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.)

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.)

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.)

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.)

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.)

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.)

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.)

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

1) Plantwide overhead rate Estimated overhead/estimated direct labor hours Estimated overhead machining 213,400 machine setups 61,600 product desing 78,000 General factory 244,000 total estimated overhead 597,000 overhead rate = 597000/10000 59.7 answer 2) overhead allocated to product Y   = 59.7*7400 441780 product Z           = 59.7*2600 155220 answer 3) Machining activity cost pool = 213,400/11000 19.40 answer 4) machine setups activity cost pool = 61600/140 440 per setup answer 5) product design activity cost pool = 78000/2 39000 per product answer 6) General factory cost activity pool = 244,000/10,000 24.4 per hour 7) option c) machine setups activity 8) option b) product design activity 9) manufacturing overhead cost allocated to product Y Activity Rate driver total Machining 19.40 6,400 124160 Machine setups 440 60 26400 production design 39,000 1 39000 General factory 24.4 7,400 180560 total manufacturing overhead cost 370120 10) allocated to Z Activity Rate driver total Machining 19.40 4,600 89240 Machine setups 440 80 35200 production design 39,000 1 39000 General factory 24.4 2,600 63440 total manufacturing overhead cost 226880 11) allocated to product Y = 441780/597,000 74.00% allocated to product Z = 155220/597000 26.00% 12) machining costs allocated to product Y = 124160/213,400 58.18% allocated to product Z = 89240/213400 41.82% 13) Machine costs allocated to product Y = 26400/61600 42.86% allocated to product Z = 35200/61600 57.14% 14) product design allocated to product Y = 39,000/78000 50.00% allocated to product Z = 39,000/78000 50.00% 15) General Factory allocated to product Y = 180,560/244,000 74.00% allocated to product Z = 63440/244000 26.00%