Greenwood Company manufactures two productsâ15,000 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 $ 221,100 11,000 MHs
Machine setups Number of setups $ 107,100 210 setups
Production design Number of products $ 85,000 2 products
General factory Direct labor-hours $ 251,000 10,000 DLHs
Activity Measure Product Y Product Z
Machining 7,100 3,900
Number of setups 60 150
Number of products 1 1
Direct labor-hours 8,100 1,900
2.
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
3.
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
4.
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)
5.
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)
Greenwood Company manufactures two productsâ15,000 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 $ 221,100 11,000 MHs
Machine setups Number of setups $ 107,100 210 setups
Production design Number of products $ 85,000 2 products
General factory Direct labor-hours $ 251,000 10,000 DLHs
Activity Measure Product Y Product Z
Machining 7,100 3,900
Number of setups 60 150
Number of products 1 1
Direct labor-hours 8,100 1,900
2.
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
3.
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
4.
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)
5.
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)
6.
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
.Which of the four activities is a batch-level activity? Machining activityGeneral factory activityProduct design activityMachine setups activity
Machining activity
General factory activity
Product design activity
Machine setups activity
8.Which of the four activities is a product-level activity? Machine setups activityMachining activityGeneral factory activityProduct design activity
Product design activity
Machining activity
Machine setups activity
General factory activity
9.
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)
Total manufacturing overhead cost
.
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 and final answer to the nearest dollar amount.)
Total manufacturing overhead cost
11.
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.)
Product Y Product Z
Total overhead cost
%
%
12.
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
Machining cost
%
%
13.
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
Machine setups cost
%
%
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 decimal places.)
Product Y Product Z
Product design cost
%
%
15.
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
General factory cost product Y% product z%
Greenwood Company manufactures two productsâ15,000 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 $ 221,100 11,000 MHs
Machine setups Number of setups $ 107,100 210 setups
Production design Number of products $ 85,000 2 products
General factory Direct labor-hours $ 251,000 10,000 DLHs
Activity Measure Product Y Product Z
Machining 7,100 3,900
Number of setups 60 150
Number of products 1 1
Direct labor-hours 8,100 1,900
2.
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
3.
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
4.
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)
5.
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)
Greenwood Company manufactures two productsâ15,000 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 $ 221,100 11,000 MHs
Machine setups Number of setups $ 107,100 210 setups
Production design Number of products $ 85,000 2 products
General factory Direct labor-hours $ 251,000 10,000 DLHs
Activity Measure Product Y Product Z
Machining 7,100 3,900
Number of setups 60 150
Number of products 1 1
Direct labor-hours 8,100 1,900
2.
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)
3.
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
4.
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)
5.
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)
6.
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
.Which of the four activities is a batch-level activity? Machining activityGeneral factory activityProduct design activityMachine setups activity
Machining activity
General factory activity
Product design activity
Machine setups activity
8.Which of the four activities is a product-level activity? Machine setups activityMachining activityGeneral factory activityProduct design activity
Product design activity
Machining activity
Machine setups activity
General factory activity
9.
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.)
Total manufacturing overhead cost
.
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 and final answer to the nearest dollar amount.)
Total manufacturing overhead cost
11.
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.)
Product Y Product Z
Total overhead cost
%
%
12.
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
Machining cost
%
%
13.
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
Machine setups cost
%
%
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 decimal places.)
Product Y Product Z
Product design cost
%
%
15.
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)
General factory cost product Y% product z%
Related questions
Hickory Company manufactures two productsâ14,000 units ofProduct Y and 6,000 units of Product Z. The company uses aplantwide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) systemthat allocates all of its manufacturing overhead to four costpools. The following additional information is available for thecompany as a whole and for Products Y and Z: |
| Activity CostPool | ActivityMeasure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 203,000 | 10,000 | MHs |
| Machine setups | Number of setups | $ | 121,900 | 230 | setups |
| Productiondesign | Number of products | $ | 87,000 | 2 | products |
| General factory | Direct labor-hours | $ | 379,500 | 12,000 | DLHs |
| ActivityMeasure | Product Y | Product Z | |
| Machine-hours | 7,300 | 2,700 | |
| Number ofsetups | 50 | 180 | |
| Number ofproducts | 1 | 1 | |
| Directlabor-hours | 9,500 | 2,500 | |
|
2. Using the plantwide overhead rate, how much manufacturingoverhead cost is allocated to Product Y and Product Z?(Round your intermediate calculations to 2 decimal placesand final answers to the nearest dollar amount.) 3. What is the activity rate for the Machining activity costpool? (Round your answer to 2 decimal places. 4. What is the activity rate for the Machine Setups activitycost pool?
| |||
Hickory Company manufactures two productsâ15,000 units ofProduct Y and 7,000 units of Product Z. The company uses aplantwide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) systemthat allocates all of its manufacturing overhead to four costpools. The following additional information is available for thecompany as a whole and for Products Y and Z: (The totalestimated overhead cost may not agree with the sum of allocatedoverhead costs to each product.) |
| Activity CostPool | ActivityMeasure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 227,700 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 153,900 | 270 | setups |
| Productiondesign | Number of products | $ | 91,000 | 2 | products |
| General factory | Direct labor-hours | $ | 257,000 | 10,000 | DLHs |
| ActivityMeasure | Product Y | Product Z |
| Machining | 7,700 | 3,300 |
| Number ofsetups | 60 | 210 |
| Number ofproducts | 1 | 1 |
| Directlabor-hours | 8,700 | 1,300 |
| Required: |
| Using the ABC system, how muchtotal manufacturing overhead cost would be assigned to ProductY?(Round your intermediate calculations to 2 decimal placesand final answers to the nearest dollar amount.) |
| Total manufacturingoverhead cost | $ |
