Question

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.)

Required information Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 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 Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 228,000 $ 40,000 $ 74,000 $ 288,000 Expected Activity 12,000 MHs 100 setups 2 products 12,000 DLHs Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 7,000 40 Product Z 5,000 60 7,000 5,000

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.)

Answer 1

Aseenwood company manufacture to products (AB) Activity overheoa (B) Activity cost of y cost of 2 cost pool cosi (A) Activity Rate machiniy $ 228 000 12000 819 (1000 x $19) 15000 x $19) 133000 = 95000 machine sehup 40,000 100 400040 X B4D0) (60 X 5400) $16000 24000 pood design 74000 2 531000 (1X $37009 (1X37000) I $37000 $ 37000 General factory 288,000 12000 $24 17000X $24) (5000x524) $ 168000 $120,000 12] machining cost: pouquc 4 Product 2 - => 5 133000 - $ 228000 = 58.33% $ 95000 228000 = 41-67% (137 machine setup cost : Product y = product 2 > $ 16000 = $40,000 24000 540,000 & 2 40% 607 (140 product design: product y3 Product 2 37000 & 37000 74000 - 50% 74000 = 50% - (15) Genercy factory. producty - s 168000 product 2 - $120,000 288000 5 288000 = 58.33% 41.67%