Greenwood Company manufactures two products-15,000 units of Product Y and 7,000
ID: 2556368 • 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: Estimated Overhead Activity Cost Pool Machining Machine setups Production design General factory Cost Expected Activity $ 216,700 11,000 MHs $ 79,900 $ 81,000 $ 247,000 10,000 DLHs Measure Machine-hours Number of setups Number of products Direct labor-hours 170 setups 2 products Activity Measure Product Y 6,700 60 Product Z 4,300 110 Machining Number of setups Number of products Direct labor-hours 7700 2,300 9 Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing overhead cost 10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing overhead cost 11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.) Product Y Product Z Total overhead cost 12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) Product Y Product Z Machining costExplanation / Answer
Answer:-9 &10)-
Explanation:-
11)Total overhead cost=$624600
Product Y=($390880/$624600)*100 =62.58%
Product Z=($233720/$624600)*100 =37.42%
12)-Total Machining cost=$131990+$84710 =$216700
Product Y=($131990/$216700)*100 =60.91%
Product Z=($84710/$216700)*100 =39.09%
Greenwood Company Particulars Product Y Product Z $ $ Machining 6700*19.70=131990 4300*19.70=84710 Machine setups 60*470=28200 110*470=51700 Production design 1*40500=40500 1*40500=40500 General factory 7700*24.70=190190 2300*24.70=56810 Total 390880 233720Related Questions
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