7. Which of the four activities is a batch-level activity? O Machine setups activity O Product design activity O General factory activity O Machining activity
7. Which of the four activities is a batch-level activity? O Machine setups activity O Product design activity O General factory activity O Machining activity
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 3PA: Activity-based and department rate product costing and product cost distortions Black and Blue...
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Required information
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:
Activity Cost Pool
Machining
Machine setups
Production design
General factory
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Estimated
Overhead Cost
$ 200,000
$ 100,000
$ 84,000
$ 300,000
Product Y Product Z
Expected Activity
10,000 MHS
200 setups
2 products
12,000 DLHS
Activity Measure
Machining
Number of setups
8,000
40
2,000
160
Number of products
1
1
Direct labor-hours
9,000
3,000
7. Which of the four activities is a batch-level activity?
O Machine setups activity
O Product design activity
O General factory activity
O Machining activity](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1352ca68-774c-4194-b642-032f843ed988%2F17002d63-bf09-4c7a-a2b1-f6f08563b73f%2Fs03v0l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:i
Required information
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:
Activity Cost Pool
Machining
Machine setups
Production design
General factory
Activity Measure
Machine-hours
Number of setups
Number of products
Direct labor-hours
Estimated
Overhead Cost
$ 200,000
$ 100,000
$ 84,000
$ 300,000
Product Y Product Z
Expected Activity
10,000 MHS
200 setups
2 products
12,000 DLHS
Activity Measure
Machining
Number of setups
8,000
40
2,000
160
Number of products
1
1
Direct labor-hours
9,000
3,000
7. Which of the four activities is a batch-level activity?
O Machine setups activity
O Product design activity
O General factory activity
O Machining activity
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