Question & Answer: Greenwood Company manufactures two products-14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwid…..

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 Cost Expected Activity $200,000 10,000 MHs Machine-hours Number of setups Number of products Direct labor-hours 100,000 $ 84,000 $300,000 ,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