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Greenwood Company manufacturers 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 s whole and for products Y and Z:
Machining. Machine-hours. $198,000. 10,000MHs
Machine setups. Number of setups. $86,400. 180 setups
Production design. Number of Products. $82,000. 2 products
General factory. Direct labor-hours. $248,000. 10,000 DLHs

Activity measure. Product Y. Product Z
Machining. 7,800. 2,200
Number of setups. 50. 130
Number of Products. 1. 1
Direct labor-hours. 7,800. 2,200

What is the activity rate for the machining activity cost pool? (Round your answer to 2 decimal places.)
Activity rate _____ per MH

Sagot :

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