FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Foundational (Static) [LO4-1, LO4-2, LO4-3, LO4-4]
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Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | |
|---|---|---|---|---|
| Machining | Machine-hours | $ 200,000 | 10,000 | MHs |
| Machine setups | Number of setups | $ 100,000 | 200 | setups |
| Production design | Number of products | $ 84,000 | 2 | products |
| General factory | Direct labor-hours | $ 300,000 | 12,000 | DLHs |
| Activity Measure | Product Y | Product Z |
|---|---|---|
| Machining | 8,000 | 2,000 |
| Number of setups | 40 | 160 |
| Number of products | 1 | 1 |
| Direct labor-hours | 9,000 | 3,000 |
Foundational 4-1 (Static)
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1. What is the company’s plantwide overhead rate?
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- Please do not give solution in image format thankuarrow_forwardi need the answer quicklyarrow_forwardRequired 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: 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 Estimated Overhead Cost $ 227,700 $ 153,908 Product Y Product Z 8,700 60 1 8,700 2,300 210 1 1,300 Expected Activity 11,000 MHS 270 setups $ 91,000. $ 257,000 2 products 10,000 DLHS 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2…arrow_forward
- Please solve this one with calculation and explanationarrow_forwardPlease do not give solution in image format thankuarrow_forwardZ Company uses activity based costing and gives you the following data regarding cost pools and estimated overhead cost for each pool. Machine related RO 80,000 Material handling RO 130,000 Purchase related RO 340,000 General factory RO 320,000 The amount of total estimated overhead is: a. RO 660,000 b. RO 550,000 c. RO 790,000 d. RO 870,000 fast just choosearrow_forward
- Please do not give solution in image format thankuarrow_forwardPlease do not give solution in image format thankuarrow_forwardBoswell Company manufactures two products, Regular and Supreme. Boswell's overhead costs consist of machining. $2400000; and assembling. $1200000. Information on the two products is: Direct labor hours Machine hours Number of parts Regular Supreme 10000 15000 30000 90000 160000 Ⓒ$2568000 $1440000. $2160000. $1032000. 10000 Overhead applied to Regular using activity-based costing isarrow_forward
- please provide answer with explanation , calculation and steps clearly and correctly answer in text formarrow_forwardTakulah Co. Ltd has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: ESTIMATED ACTIVITY ACTIVITY CENTER PRODUCT 1 PRODUCT 2 ESTIMATED COST Machine setups 15 45 $10,800 Assembly Parts 3000 3000 144600 Packaging pieces 500 400 55350 Machine hour per unit 4 3 Production volume 750 1500 Required: i) How much overhead would be allocated to each unit under the traditional allocation method? ii) How much overhead would be allocated to each unit under activity-based costing? iii) Would you recommend a change to ABC costing for this company? Justify your answerarrow_forwardPlease do not give solution in image format thankuarrow_forward
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