Question: Foundational ( Algo ) [ LO 4 - 1 , LO 4 - 2 , LO 4 - 3 , LO 4 - 4 ]

Foundational (Algo)[LO4-1, LO4-2, LO4-3, LO4-4]
Skip to question
Greenwood Company manufactures two products15,000 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 $ 210,10011,000 MHs
Machine setups Number of setups $ 45,100110 setups
Production design Number of products $ 75,0002 products
General factory Direct labor-hours $ 241,00010,000 DLHs
Activity Measure Product Y Product Z
Machining 7,1003,900
Number of setups 6050
Number of products 11
Direct labor-hours 7,1002,900
Foundational 4-9(Algo)
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?
10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?
11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?
12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?
13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?
14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?
15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!