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 Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 228,000 12,000 MHs Machine setups Number of setups $ 40,000 100 setups Production design Number of products $ 74,000 2 products General factory Direct labor-hours $ 288,000 12,000 DLHs   Activity Measure Product Y Product Z Machining 7,000 5,000 Number of setups 40 60 Number of products 1 1 Direct labor-hours 7,000 5,000   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.)

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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 Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 228,000 12,000 MHs
Machine setups Number of setups $ 40,000 100 setups
Production design Number of products $ 74,000 2 products
General factory Direct labor-hours $ 288,000 12,000 DLHs

 

Activity Measure Product Y Product Z
Machining 7,000 5,000
Number of setups 40 60
Number of products 1 1
Direct labor-hours 7,000 5,000

 

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.)

 

 
Required information
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
Machining
Number of setups
Number of products
Direct labor-hours
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Total overhead cost
Product Y
Product Y Product Z
7,000
5,000
40
60
1
1
7,000
5,000
%
Estimated
Overhead Cost
$ 228,000
Product Z
%
$ 40,000
$ 74,000
$ 288,000
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.)
Expected Activity
12,000 MHS
100 setups
2 products
12,000 DLHS
Transcribed Image Text:Required information 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 Machining Number of setups Number of products Direct labor-hours Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Total overhead cost Product Y Product Y Product Z 7,000 5,000 40 60 1 1 7,000 5,000 % Estimated Overhead Cost $ 228,000 Product Z % $ 40,000 $ 74,000 $ 288,000 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.) Expected Activity 12,000 MHS 100 setups 2 products 12,000 DLHS
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