Activity-Based Costing Assignment
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: 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 231,600 $ 55,900 $77,000 $ 364,500 Expected Activity 12,000 MHS 130 setups 2 products 15,000 DLHS ure Product 7,300 Product Z 4,700 Activity Measure Machining Number of setups Number of products Direct labor-hours 7,700 4. What is the activity rate for the Machine Setups activity cost pool? Activity rate per setup.
