Question

Required information Greenwood Company manufactures two products-15,000 units of Product Y and 7000 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 Activity Measure Machine-hours Number of setups Number of products Direct labor-hours 251,00010, 000 DLHs Cost $ 221,100 11,000 MHs $ 107,100 Machining Machine setups Production design General factory 210 setups S 8,000 2 products 2,900 160 Machining Number of setups Number of products Direct labor-hours 8,100 50 1 8,100 1,900 Required: 1 What is t the company's plantwide overhead rate? (Round your answer to 2 decimal places.) overhead rate per DLH

Answer 1

Ans:

1. What is the company’s plant wide overhead rate? (Round your answer to 2 decimal places.) (Per DHL)
Total Overheads	664,200
Total Direct Labour hours	10000
plant wide overhead rate	$66.42 Per DLH

Total Overheads=$221100+$107100+$85,000+$251,000=$664,200

Total Direct labour Hours=10,000 Given.

Plant wide Overhead rate=Total Overheads/Total Direct labour hours