Answer
Y: 70%;
Z: 30%
Work Step by Step
Total overhead cost for Machining: 200,000
Using the ABC system, percentage of the Machining costs assigned to Product Y: $\frac{140,000}{200,000} \times 100 =70$%
Percentage allocated to Product Z: $100 - 70 = 30$%
The Machining allocation percentages used in the ABC system are similar to the plantwide allocation percentages because the Machining cost pool uses a unit-level activity measure (machine-hours). Since the plantwide cost pool also uses a unit-level allocation base (direct labor-hours), it is reasonable to expect these cost allocations percentages to be comparable.
