Please step by step. The Company manufactures two products14,000 units of Product...
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Accounting
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The Company manufactures two products14,000 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
Activity Measure
Estimated Overhead Cost
Expected Activity
Machining
Machine-hours
$
203,000
10,000
MHs
Machine setups
Number of setups
$
121,900
230
setups
Production design
Number of products
$
87,000
2
products
General factory
Direct labor-hours
$
379,500
15,000
DLHs
Activity Measure
Product Y
Product Z
Machining
8,300
1,700
Number of setups
50
180
Number of products
1
1
Direct labor-hours
9,500
5,500
13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?
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