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:
1.
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
2.
value:
10.00 points
Required information
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.)
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
3.
value:
10.00 points
Required information
What is the activity rate for the Machining activity cost pool? (Round your answer 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
4.
value:
10.00 points
Required information
What is the activity rate for the Machine Setups activity cost pool? (Round your answer 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
5.
value:
10.00 points
Required information
What is the activity rate for the Product Design activity cost pool? (Round your answer 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
6.
value:
10.00 points
Required information
What is the activity rate for the General Factory activity cost pool? (Round your answer 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
7.
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
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.)
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.
| 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
Answer 1.
Estimated Total Overhead Cost = $231,000 + $180,000 + $94,000 + $260,000
Estimated Total Overhead Cost = $765,000
Estimated Total direct labor-hours = 9,000 + 1,000
Estimated Total direct labor-hours = 10,000
Plantwide Overhead Rate = Estimated Total Overhead Cost / Estimated Total direct labor-hours
Plantwide Overhead Rate = $765,000 / 10,000
Plantwide Overhead Rate = $76.50
Answer 2.
Product Y:
Plantwide Overhead Rate = $76.50
Expected Direct labor-hours = 9,000
Manufacturing Overhead allocated = Plantwide Overhead Rate * Expected Direct labor-hours
Manufacturing Overhead allocated = $76.50 * 9,000
Manufacturing Overhead allocated = $688,500
Product Z:
Plantwide Overhead Rate = $76.50
Expected Direct labor-hours = 1,000
Manufacturing Overhead allocated = Plantwide Overhead Rate * Expected Direct labor-hours
Manufacturing Overhead allocated = $76.50 * 1,000
Manufacturing Overhead allocated = $76,500
Answer 3.
Activity Rate = Estimated Overhead / Expected Activity level
Activity Rate = $231,000 / 11,000
Activity Rate = $21.00 per MH
Answer 4.
Activity Rate = Estimated Overhead / Expected Activity level
Activity Rate = $180,000 / 300
Activity Rate = $600.00 per setup
Answer 5.
Activity Rate = Estimated Overhead / Expected Activity level
Activity Rate = $94,000 / 2
Activity Rate = $47,000 per product
Answer 6.
Activity Rate = Estimated Overhead / Expected Activity level
Activity Rate = $260,000 / 10,000
Activity Rate = $26.00 per DLH
