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! Required information Greenwood Company manufactures two products -14,000 units of Product Y and...

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Accounting

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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 or 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,$200,000,10,000 MHs],[Machine setups,Number of setups,$100,000,200 setups],[Production design,Number of products,$84,000,2 products],[General factory,Direct labor-hours,$300,000,12,000 DLHs]]
\table[[Activity Measure,Product Y,Product Z],[Machining,8,000,2,000],[Number of setups,40,160],[Number of products,1,1],[Direct labor-hours,9,000,3,000]]
What is the activity rate for the Machine Setups activity cost pool?
Activity rate
per setup
image

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