Question

Required information Greenwood Company manufactures two products -15,000 units of Product Y and 7000 units of Product uses a plantwide overhead rate based on direct labor-hours. It is considering implementin UASRC I system that allocates all of its manufacturing overhead to four cost pools. The followirig g an activity-based costing information is available for the company as a whole and for Products Y and Z Estimated Overhead Act tivity Cost Pool Activity MeasureCost Expected ActivitY Machining Machine setups Production design General factory Machine-hours Number of setups Number of products Direct labor-hours s 221,100 S 107,100 $ 85,000 $251,000 11,000 MHs 210 setups 2 products 10 Activity Measure Machining Number of setups Number of products Direct labor-hours 8,100 50 1 8,100 160 1,900 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. Round your answers to the nearest dollar amount.) Total

Answer 1

Calculation of Activity rates
Activity Cost Pool	Activity driver	Overhead Cost	Expected Activity (B)	Activity rate (A/B)
Machining	Number of Machine hours	$ 2,21,100.00	11,000	$            20.10	Per Machine hours
Machine setup	Number of Setups	$ 1,07,100.00	210	$         510.00	Per Setups
Production design	Number of Products	$    85,000.00	2	$   42,500.00	Per Products
General factory	Number of Labor hour	$ 2,51,000.00	10,000	$            25.10	Per Labor hour
Total		$ 6,64,200.00

Requirement 9

Answer---$434,120

Cost assigned to Product Y
Activity name	Activity Rates	Activity	ABC Cost
	(A)	(B)	(A x B)
Machining	$           20.10	8100	$       1,62,810.00
Machine setup	$         510.00	50	$           25,500.00
Production design	$   42,500.00	1	$           42,500.00
General factory	$           25.10	8100	$       2,03,310.00
Total Overheads assigned			$       4,34,120.00

Requirement 10

Answer---$230,080

Cost assigned to Product Z
Activity name	Activity Rates	Activity	ABC Cost
	(A)	(B)	(A x B)
Machining	$           20.10	2900	$           58,290.00
Machine setups	$         510.00	160	$           81,600.00
Production design	$   42,500.00	1	$           42,500.00
General factory	$           25.10	1900	$           47,690.00
Total Overheads assigned			$       2,30,080.00

Requirement 10

Plantwide overhead rate (664200/10000)	$                 66.42
Overhead allocated to Y(66.42 x 8100)	$     5,38,002.00
Overhead allocated to Z(66.42 x 1900)	$     1,26,198.00

	product Y	Product Z	Total
Overhead assigned	$   5,38,002.00	$   1,26,198.00	$       6,64,200.00
%	81.00%	19.00%