Greenwood Company manufactures two products-15,000 units of Product Y and 1,000 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: Expected Activity Estimated 0verhead Activity Cost Pool Activity Measure Machine-hours Machining Machine setups %24 24 Cost 227, 700 153, 900 11, 000 MHS 270 setups Number of setups Number of products Direct labor- $4 91, 000 2 products Production design General factory $ 257, 000 10, 000 DLHS hours Activity Measure Machining Number of setups Number of products Direct labor-hours Product Z 2,300 210 Product Y 8, 700 60 1 1 8, 700 1, 300 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.) Product Y Product Z Total overhead cost
Greenwood Company manufactures two products-15,000 units of Product Y and 1,000 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: Expected Activity Estimated 0verhead Activity Cost Pool Activity Measure Machine-hours Machining Machine setups %24 24 Cost 227, 700 153, 900 11, 000 MHS 270 setups Number of setups Number of products Direct labor- $4 91, 000 2 products Production design General factory $ 257, 000 10, 000 DLHS hours Activity Measure Machining Number of setups Number of products Direct labor-hours Product Z 2,300 210 Product Y 8, 700 60 1 1 8, 700 1, 300 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.) Product Y Product Z Total overhead cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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