Greenwood Company manufactures two products-15,000 units of Product Y and 7,000
ID: 2488166 • 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 pj&S;&Kj;^S 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. what is the company's plantwide overhead rate? 2. Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to product Y and product Z? (manufacturing overhead allocated (poduct Y)(Product Z) 3. what is the activity rate for the machining activity cost pool? 4. what is the activity rate for the machine setups activity cost pool? 5. what is the activity rate for the product design activity cost pool?Explanation / Answer
calculation of plantwide overhead rate
calcuation of manufacturing overhead cost for product y and product z
3)refer table 1
4) refer table 1
5) refer table 1
activity cost pool activity measure estimated overhead cost expected activity plant overhead rate machining machine hours $ 221,100 11,000 $ 20.1 machines setups number of setups $ 107,100 210 $ 510 product design number of products $ 85,000 2 $ 42,500 general factory direct labour hours $ 251,000 10,000 $ 25.1Related Questions
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