Greenwood Company manufactures two products—14,000 units ofProduct Y and 6,000 units of Product Z. The company uses aplantwide overhead rate based on direct labor-hours. It isconsidering implementing an activity-based costing (ABC) systemthat allocates all of its manufacturing overhead to four costpools. The following additional information is available for thecompany as a whole and for Products Y and Z: Activity CostPool ActivityMeasureEstimated OverheadCost ExpectedActivity Machining Machine-hours $203,000 10,000MHs Machinesetups Number ofsetups $121,900 230 setups Productiondesign Numberofproducts $87,000 2 products Generalfactory Directlabor-hours $379,500 15,000 DLHs Activity Measure ProductY ProductZ Machining 7,300 2,700 Number ofsetups 50 180 Number ofproducts 1 1 Directlabor-hours 9,500 5,500 . . .
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