Greenwood company manufactures two products - 15,000 units of Product Y and 7,00

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 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 Products Y and Z.

what is the company' s plantwide overhead rate?

Estimated Mesure $ 23 Cost Pool Activity Measure Cost Expected Mechine-hours Number of seaups Number of products Machining $ 231000 11000 MHs 180,000300 seups s 94000 2 producs Production design Genersl ectory Direet lebor-hours $260.000 10.000 DLHS Acsivity Measure Product Y Product Z 8,000 Doo e0 20 Mechining Machining Namber of seups Number af products 0 00 points

Explanation / Answer

Plant overhead rate

Note : General Factory Cost is not clear from picture it seems to be 260,000 so i put that in answer if it is other figure replace that with it and calculate total again to get the answer.

Particulars Amount Machining $ 231,000 Machine setups $ 180,000 Production Designs $ 94,000 General Factory $ 260,000 Total A $ 765,000 Direct Labour hours Product Y 9,000 Product Z 1,000 Total B 10,000 Plantwide overhead rate A/B $ 76.50

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