Greenwood Company manufactures two products-15.000 units of Product Y and 7,000
ID: 2488216 • 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 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: 13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product. Z? 14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? 15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?Explanation / Answer
Product Y Product Z Machine setups cost 28.57% 71.43% 60/210 150/210 Product design cost 50.00% 50.00% 1/2. 1/2. General factory cost 81.00% 19.00% 8100/10000 1900/10000 Machining cost 64.55% 35.45% 7100/11000 3900/11000
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