Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. greenwood company manufactures two products13,000

Greenwood Company manufactures two products13,000 units of Product Y and 5,000 units of Product Z....

90.2K

Verified Solution

Question

Accounting

Greenwood Company manufactures two products13,000 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 Activity Measure Estimated Overhead Cost Expected Activity
Machining Machine-hours $ 231,600 12,000 MHs
Machine setups Number of setups $ 55,900 130 setups
Production design Number of products $ 77,000 2 products
General factory Direct labor-hours $ 364,500 15,000 DLHs

Activity Measure Product Y Product Z
Machining 6,300 5,700
Number of setups 40 90
Number of products 1 1
Direct labor-hours 7,300 7,700
image
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 and final answer to the nearest dollar amount.) Total manufacturing overhead cost 405,080

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students