Heintz Products uses activity-based costing to account for product costs. The plant manager has estimated the following cost drivers and rates. Activity Centers Materials inspection Equipment maintenance. Machine setups Packing and shipping. Cost Drivers Direct materials cost Machine-hours Number of production runs Pounds of finished output Rate per Cost Driver Unit 15% of materials cost. $30 per machine-hour $ 6,480 per setup $5.30 per pound Direct materials costs were $552,000 and direct labor costs were $392,000 during November, when the plant finished 7,000 pounds of product, had 20 setups, and ran the machines for 15,000 hours. There were no work-in-process inventories.

Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 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 $ 192,000 10,000 MHs Machine setups Number of setups $ 50,400 120 setups Production design Number of products $ 76,000 2 products General factory Direct labor-hours $ 387,200 16,000 DLHs   Activity Measure Product Y Product Z Machining 7,200 2,800 Number of setups 50 70 Number of products 1 1 Direct labor-hours 7,200 8,800   What is the activity rate for the Product Design activity cost pool? What is the activity rate for the General Factory…

Campbell Company produces commercial gardening equipment. Since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. The costs and cost drivers associated with the four overhead activity cost pools follow: Cost Cost driver Unit Level $75,400 Req A and B 2,900 labor hours Production of 870 sets of cutting shears, one of the company's 20 products, took 160 labor hours and 7 setups and consumed 19 percent of the product-sustaining activities. Complete this question by entering your answers in the tabs below. Req C Allocated overhead Direct cost Total cost per unit Desired profit Sales price Required 8. Had the company used labor hours as a companywide allocation base, how much overhead would It have allocated to the cutting shears? b. How much overhead is allocated to the cutting shears using activity-based costing? c. Compute the overhead cost per unit for cutting shears first using activity-based costing and then using…

Weldon Corporation has provided the following data from its activity-based costing accounting system: Indirect factory wages Factory equipment depreciation Distribution of Resource Consumption across Activity Cost Pools: $ 340,000 $ 240,000 Customer Orders 25% 40% Product Processing 65% 40% Activity Cost Pools Indirect factory wages Factory equipment depreciation The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products. How much indirect factory wages and factory equipment depreciation cost would NOT be assigned to products using the activity-based costing system? Other 10% 20% Total 100% 100%