Question

iment 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: Estimated Expected Activity Overhead Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Number of setups Number of products Direct labor-hours Cost $ 198,000 10,000 MHs 180 setups 2 products 86,400 82,000 $ 248,000 10,000 DLHS Product Y Product Z Activity Measure Machining Number of setups Number of products Direct labor-hours 2,200 130 7,800 50 2,200 7,800 O. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to the nearest dollar amount.) Total manufacturing overhead cost

Answer 1

Calculation Of Activity Driver Rate Per Activity
Activity	Total Overhead Cost	Expected Activities	Activity Driver rate
Machining	$                      1,98,000	10000 Machine Hours	$                         19.80	Per MHs
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
Total Manufacturing Overhead Cost Allocated To Product Z
	Activity Rate	Number of activities	Overhead Cost
Machining	$                            19.80	2200	$                       43,560
Machine Setup	$                         480.00	130	$                       62,400
Production Design	$                   41,000.00	1	$                       41,000
General Factory	$                            24.80	2200	$                       54,560
Total Manufacturing Overhead Cost			$                   2,01,520