Question

14 Part 14 of 15 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: eBook Print 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 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.) Product Product z Product design cost

Answer 1

The base for the product design cost allocation: Number of Products

Total Product Produced =2

Product Y= 1 Product

Product Z= 1 Product

Product design cost Allocation :

Product X= 1/2 = 50%

Product Z= 1/2 =50%

	Product Y	Product Z
Product Desing Cost	50.00%	50.00%