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 |
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| Machining | Machine-hours | $ | 227,700 | 11,000 | MHs | ||
| Machine setups | Number of setups | $ | 153,900 | 270 | setups | ||
| Production design | Number of products | $ | 91,000 | 2 | products | ||
| General factory | Direct labor-hours | $ | 257,000 | 10,000 | DLHs | ||
| Activity Measure | Product Y | Product Z | ||||
| Machining | 8,700 | 2,300 | ||||
| Number of setups | 60 | 210 | ||||
| Number of products | 1 | 1 | ||||
| Direct labor-hours | 8,700 | 1,300 | ||||
11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your answers to 2 decimal places.)
| Plantwide overhead rate ((227700+153900+91000+257000)/(10000)) | $ 72.96 |
| Overhead allocated to Product Z (1300 x 72.96) | $ 94,848 |
| Percentage of overheads allocated to Z (94848/729600 x 10) | 13.00% |
| Percentage of overheads allocated to Z ((729600-94848)/729600 x 100) | 87.00% |
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