Question

A. using the abc system, how much total manufacturing overhead cost would be assigned to product Y?

B. Using ABC system, how mych total manufacturing overhead cost woykd be assigned to product Z?

C.using the plabtwide iverhead rate, what percentage if the total overbead cost is allocated to product Y and product Z?

D. Using ABC system, what percebtage if the machining costs is assigned to product Y and product Z?

E. what percentage if machine setups cost is assigned to product Y and Product Z?

F. what percentache of product design cost is addined to product Y and Z?

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 Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Estimated Overhead Cost $ 200,000 $ 100,000 $ 84,000 $ 300,000 Expected Activity 10,000 MHS 200 setups 2 products 12,000 DLHO Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y 8,000 40 1 9,000 Product 2 2,000 160 2 3,000

Answer 1

	Activity	Estimated Cost A	Estimated Activity B	Activity Rate (A/B)
	Machining	200,000	10,000	20
	Machine Setup	100,000	200	500
	Production Design	84,000	2	42,000
	Genral Factory	300,000	12,000	25
	Total Estimated Cost	684,000
A	Product Y	Activity- (A)	Activity Rate-(B)	Cost (A*B)
	Machining	8,000	20	160,000
	Machine Setup	40	500	20,000
	Production Design	1	42,000	42,000
	Genral Factory	9,000	25	225,000
	Manufacturung Overhead Cost			447,000
B	Product Z	Activity- (A)	Activity Rate-(B)	Cost (A*B)
	Machining	2,000	20	40,000
	Machine Setup	160	500	80,000
	Production Design	1	42,000	42,000
	Genral Factory	3,000	25	75,000
	Manufacturung Overhead Cost			237,000
C	Plant Wide	Amount
	Estimated Overhead Cost	684,000
	Estimade Direct Labour Hours (3000+9000)	12,000
	Predetermined Ohs (684000/12000)	57
		Product y	Product Z	Total
	Direct Labours Hrs	9,000	3,000	12,000
	Predetermined Ohs	57	57
	Manufacturing Ohs assigned (9000*57,3000*57)	513,000	171,000	684,000
	% of allocation	75%	25%	100%
D	Machine Cost	Product y	Product Z	Total
	Machine Cost	160,000.00	40,000.00	200,000.00
	% of allocation	80%	20%	100%
E	Machine Design	Product y	Product Z	Total
	Machine Design Cost	20,000.00	80,000.00	100,000.00
	% of allocation	20%	80%	100%
F	Prodcut Design	Product y	Product Z	Total
	Prodcut Design Cost	42,000.00	42,000.00	84,000.00
	% of allocation	50%	50%	100%