Greenwood Company manufactures two products—15,000 units of Product Y and 7,000
ID: 2396992 • Letter: G
Question
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:
1.
value:
10.00 points
Required information
2.
value:
10.00 points
Required information
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.
value:
10.00 points
Required information
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
4.
value:
10.00 points
Required information
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.)
5.
value:
10.00 points
Required information
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.)
6.
value:
10.00 points
Required information
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)
7.
value:
10.00 points
Required information
8.
value:
10.00 points
Required information
9.
value:
10.00 points
Required information
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.)
k
10.
value:
10.00 points
Required information
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.)
11.
value:
10.00 points
Required information
12.
value:
10.00 points
Required information
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.)
13.
value:
10.00 points
Required information
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.)
14.
value:
10.00 points
Required information
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.)
15.
value:
10.00 points
Required information
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.)
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:
Explanation / Answer
1)Estimated Total overhead=231000+180000+94000+260000=765000
Estimated total DLH =10000
Plantwide overhead rate =Estimated total overhead/Estimated total DLH
= 765000/10000
= $ 76.5 Per DLH
2)manufacturing overhead cost allocated to Product Y =Overhead rate * DLH allocated to Y
= 76.5 * 9000
= $ 688,500
manufacturing overhead cost allocated to Product Z = 76.5 * 1000
= $ 76500
3)Activity rate for the Machining activity cost pool =Estimated overhead/estimated activity
= 231000 / 11000
= $21 per MH
4)Activity rate for the Machine Setups activity cost pool =Estimated overhead/estimated activity
= 180000/300
= $ 600 per set up
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