question archive Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z
Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z
Subject:AccountingPrice: Bought3
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: Estimated Overhead Activity Cost Pool Activity Measure Cost Expected Activity 221.100 11,000 MHs Machining Machine-hours 107100 Machine setups Number of setups 210 setups 85,000 Production design Number of products 2 products 251,000 13,200 DLHs General factory Direct labor-hours Activity Measure Product Y Product Z 7100 3,900 Machine-hours 150 Number of setups 60 Number of products Direct labor-hours 8100 5100
