PLEASE ANSWER ALL QUESTIONS! Greenwood Company manufactures two products—15,000 units ofProduct Y and 7,000 units of Product Z. The company uses aplantwide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) systemthat allocates all of its manufacturing overhead to four costpools. The following additional information is available for thecompany as a whole and for Products Y and Z: |
| Activity CostPool | ActivityMeasure | Estimated Overhead Cost | Expected Activity |
| Machining | Machine-hours | $ | 231,000 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 180,000 | 300 | setups |
| Productiondesign | Number of products | $ | 94,000 | 2 | products |
| General factory | Direct labor-hours | $ | 260,000 | 10,000 | DLHs |
|
| ActivityMeasure | Product Y | Product Z |
| Machining | 8,000 | 3,000 |
| Number ofsetups | 60 | 240 |
| Number ofproducts | 1 | 1 |
| Directlabor-hours | 9,000 | 1,000 |
|
1.
value:
10.00 points
Required information
| 1. | What is thecompany’s plantwide overhead rate? (Round your answer to 2decimal places.) |
| |
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eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
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2.
value:
10.00 points
Required information
| 2. | Using the plantwide overhead rate, how much manufacturingoverhead cost is allocated to Product Y and Product Z?(Round your intermediate calculations to 2 decimal placesand final answers to the nearest dollar amount.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
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3.
value:
10.00 points
Required information
| 3. | What is the activity rate for the Machining activity cost pool?(Round your answer to 2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
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4.
value:
10.00 points
Required information
| 4. | What is the activity rate for the Machine Setups activity costpool? (Round your answer to 2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
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5.
value:
10.00 points
Required information
| 5. | What is the activity rate for the Product Design activity costpool? (Round your answer to 2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
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6.
value:
10.00 points
Required information
| 6. | What is the activity rate for the General Factory activity costpool? (Round your answer to 2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
7.
value:
10.00 points
Required information
| 7. | Which of the fouractivities is a batch-level activity? |
| |
| | Machining activity | | General factory activity | | Product design activity | | Machine setups activity |
|
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
8.
value:
10.00 points
Required information
| 8. | Which of the fouractivities is a product-level activity? |
| |
| | Machining activity | | Machine setups activity | | Product design activity | | General factory activity |
|
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
9.
value:
10.00 points
Required information
| 9. | Using the ABC system, how much total manufacturing overhead costwould be assigned to Product Y? (Round your intermediatecalculations to 2 decimal places and final answer to the nearestdollar amount.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
10.
value:
10.00 points
Required information
| 10. | Using the ABC system, how much total manufacturing overhead costwould be assigned to Product Z? (Round your intermediatecalculations to 2 decimal places and final answer to the nearestdollar amount.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
11.
value:
10.00 points
Required information
| 11. | Using the plantwide overhead rate, what percentage of the totaloverhead cost is allocated to Product Y and Product Z?(Round your answers to 2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
12.
value:
10.00 points
Required information
| 12. | Using the ABC system, what percentage of the Machining costs isassigned to Product Y and Product Z? (Round your answers to2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
13.
value:
10.00 points
Required information
| 13. | Using the ABC system, what percentage of Machine Setups cost isassigned to Product Y and Product Z? (Round your answers to2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
14.
value:
10.00 points
Required information
| 14. | Using the ABC system, what percentage of the Product Design costis assigned to Product Y and Product Z? (Round your answersto 2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.eBook:Understand the basic approach in activity-based costing and how itdiffers from conventional costing.
Check my work
15.
value:
10.00 points
Required information
| 15. | Using the ABC system, what percentage of the General Factorycost is assigned to Product Y and Product Z? (Round youranswers to 2 decimal places.) |
| |
eBook & Resources
eBook: Compute activity rates for an activity-based costingsystem.eBook: Compute product costs using activity-basedcosting.eBook: Contrast the product costs computed underactivity-based costing and conventional costing methods.
