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Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z....

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Accounting

Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 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 :
\table[[Activity Cost Pool,Activity Measure,\table[[Estimated],[Overhead Cost]],Expected Activity],[Machining,Machine-hours,$224,400,11,000 MHs],[Machine setups,Number of setups,$129,600,240 setups],[Production design,Number of products,$88,000,2 products],[General factory,Direct labor-hours,$254,000,10,000 DLHs]]
\table[[Activity Measure,Product Y,Product Z],[Machining,8,400,2,600],[Number of setups,60,180],[Number of products,1,1],[Direct labor-hours,8,400,1,600]]
Foundational 4-3(Algo)
3. What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)
Activity rate
per MH
image

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