Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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: Estimated Overhead Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Cost $ 242,400 $ 114,400 $ 86,000 $ 302,400 Expected Activity 12,000 MHS 220 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Product Y 8,200 40 Product z 3,800 180 1 Direct labor-hours 8,200 3,800 A. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Requlred Informatlon
Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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
Machining
Machine setups
Production design
General factory
Activity Measure,
Machine-hours
Number of setups
Number of products
Direct labor-hours
Estimated
Overhead
Cost
$ 242,400
$ 114,400
86,000
$ 302,400
Expected
Activity
12,000 MHs
220 setups
2 products
12,000 DLHS
Activity Measure
Machining
Number of setups
Number of products
Direct labor-hours,
Product Y
8,200
40
Product Z
3,800
180
1.
3,800
8,200
4. What is the activity rate for the Machine Setups activity cost pool?
灣灣彩
Activity rate
per setup
15
of 15
Axt >
< Prev
4 5
9.
92 F AQI 61
to search
DELL
Transcribed Image Text:Requlred Informatlon Greenwood Company manufactures two products-13,000 units of Product Y and 5,000 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 Machining Machine setups Production design General factory Activity Measure, Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 242,400 $ 114,400 86,000 $ 302,400 Expected Activity 12,000 MHs 220 setups 2 products 12,000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours, Product Y 8,200 40 Product Z 3,800 180 1. 3,800 8,200 4. What is the activity rate for the Machine Setups activity cost pool? 灣灣彩 Activity rate per setup 15 of 15 Axt > < Prev 4 5 9. 92 F AQI 61 to search DELL
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