Question

Chapter 4 Assignment i Saved Required information 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 $ 198,000 $ 86,400 $ 82,000 $ 248,000 Expected Activity 10,000 MHS 180 setups 2 products 10,000 DLHS Product Y 7,800 Product Z 2,200 130 50 Activity Measure Machining Number of setups Number of products Direct labor-hours 7,880 2,200 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 manufacturing overhead cost

Answer 1

Activity Driver Rate
Activity	Total Overhead Cost	Total Number Of Activities	Activity Driver rate
Machining	$                      1,98,000	10000 Machine Hours	$                         19.80	Per machine hour
Machine Setup	$                         86,400	180 Steups	$                             480	per setup
Production Design	$                         82,000	2 products	$                       41,000	per product
General Factory	$                      2,48,000	10000 DLHs	$                         24.80	per DLHs
Overhead allocated to each product.
Total Overhead Cost For Product Y
	Activity Rate	Number of activity	Overhead Cost
Machining	19.8	7800	$                   1,54,440
Machine Setup	480	50	$                       24,000
Production Design	41000	1	$                       41,000
General Factory	24.8	7800	$                   1,93,440
Total Overhead Cost			$                   4,12,880