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Greenwood Company manufactures two products-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 Estimated Overhead Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Expected Activity Machine-hours Number of setups Number of products Direct labor-hours Cost $200,000 0,000 MHs $100,000 $ 84,000 $300,000 2,000 DLHs 200 setups 2 products Activity Measure ProductY Product Z 2,000 160 Machining Number of setups Number of products Direct labor-hours 8,000 40 9,000 3,000
Expert Answer
We are supposed to solve 4 questions only when multiple questions posted.
3)Machining activity cost pool= overhead cost/estimated cost driver
=200000/100000=20 per Machine hr
4)Machine setup=100000/200=500 per setup
5)Production Design= 84000/2=42000 per product
6)Fenral factory=300000/12000=25 per DLH
7) Machine seup
8) Product design activity
