Question

Required information

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:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost			Expected Activity
Machining	Machine-hours	$	198,000			10,000	MHs
Machine setups	Number of setups	$	86,400			180	setups
Production design	Number of products	$	82,000			2	products
General factory	Direct labor-hours	$	248,000			10,000	DLHs

Activity Measure	Product Y			Product Z
Machining		7,800			2,200
Number of setups		50			130
Number of products		1			1
Direct labor-hours		7,800			2,200

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)

12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.)

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations and final answers to 2 decimal places.)

i know its only four questions, but this the last question i need answered. ty

Answer 1

11) Percentage of plantwide overhead rate

	Product Y	Product Z
Plantwide overhead rate	7800/10000 = 78%	22%

12) Percentage of machining

	Product Y	Product Z
Machine hour	7800/10000 = 78%	22%

13) Percentage of machine setup

	Product Y	Product Z
Machine setup	50/180 = 27.78%	130/180 = 72.22%

14) Percentage of product design

	Product Y	Product Z
Product design	1/2 = 50%	50%

15) Percentage of Direct labor hours

	Product Y	Product Z
Direct labor hours	7800/10000 = 78%	22%