Question

Required information 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 Expected Activity 11,000 MHs Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Cost 227,700 153,900 $ 91,000 Number of setups 270 setups Number of products 2 products Direct labor-hours 257,000 10,000 DLHS Activity Measure Product Y Product Z 8,700 2,300 Machining Number of setups Number of products 60 210 1 1. Direct labor-hours 8,700 1,300 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.) Product Z Product Y Machine setups cost

Answer 1

	Product Y		Product Z
Machine Setups costs	(60/270)	22.22%	(210/270)	77.78%
Formula = Specific product activity/ Total activity