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Greenwood Company manufactures two productsâ€â€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 PoolActivity MeasureEstimated Overhead CostExpected 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 MeasureProduct YProduct Z Machining6,200 3,800 Number of setups50 70 Number of products1 1 Direct labor-hours7,200 8,800 1.
10.00 points
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?
(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?
What is the activity rate for the Machine Setups activity cost pool?
(Round your answer to 2 decimal places.)
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