FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:

 

Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 231,000 11,000 MHs
Machine setups Number of setups $ 180,000 300 setups
Production design Number of products $ 94,000 2 products
General factory Direct labor-hours $ 260,000 10,000 DLHs

 

Activity Measure Product Y Product Z
Machining 9,000 2,000
Number of setups 60 240
Number of products 1 1
Direct labor-hours 9,000 1,000

 

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.)

 

 
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