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 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: Estimated Overhead Expected Activity Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Cost Number of setups Number of products Direct labor-hours $ 206,000 $ 145,600 $ 90,000 $ 307, 200 10, еее мнs 260 setups 2 products 12, 000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y Product Z 8,600 1,400 50 210 1 8,600 3,400
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 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: Estimated Overhead Expected Activity Activity Cost Pool Machining Machine setups Production design General factory Activity Measure Machine-hours Cost Number of setups Number of products Direct labor-hours $ 206,000 $ 145,600 $ 90,000 $ 307, 200 10, еее мнs 260 setups 2 products 12, 000 DLHS Activity Measure Machining Number of setups Number of products Direct labor-hours Product Y Product Z 8,600 1,400 50 210 1 8,600 3,400
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 4PB: Activity-based product costing Sweet Sugar Company manufactures three products (white sugar, brown...
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