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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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:
Expected
Activity
11, 000 MHS
270 setups
Estimated Overhead
Cost
Activity Cost Pool Activity Measure
227, 700
153, 900
Machine-hours
Number of setups
Number of
products
Direct labor-
%$4
Machining
Machine setups
Production design
91,000
2 products
General factory
257,000
10, 000 DLHS
hours
Activity Measure
Machining
Number of setups
Number of products
Direct labor-hours
Product Y
8, 700
60
Product Z
2, 300
210
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
%
%24
Transcribed Image Text:Required information 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: Expected Activity 11, 000 MHS 270 setups Estimated Overhead Cost Activity Cost Pool Activity Measure 227, 700 153, 900 Machine-hours Number of setups Number of products Direct labor- %$4 Machining Machine setups Production design 91,000 2 products General factory 257,000 10, 000 DLHS hours Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8, 700 60 Product Z 2, 300 210 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 % %24
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