Required information
Foundational (Algo) [LO4-1, LO4-2, LO4-3, LO4-4]
Greenwood 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:
Activity Cost Pool
Activity Measure
Estimated
Overhead Cost
Expected Activity
Machining
Machine-hours
Machine setups
Number of setups
$ 213,400
$ 61,600
11,000 MHs
Production design
Number of products
General factory
Direct labor-hours
Activity Measure
Product Y
Machining
7,400
Number of setups
Number of products
Direct labor-hours
60
1
$ 78,000
$ 244,000
140 setups
2 products
10,000 DLHS
Product Z
3,600
80
1
7,400
2,600
Foundational 4-9 (Algo)
9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y?
Note: Round your intermediate calculations to 2 decimal places. Round your answer to the nearest dollar amount.
Total manufacturing overhead cost
