Yang Corporation Has an Activity-Based Costing System with Three Activity\[\begin{array} { l c r } & \text { MHs } & \text { Batches } \\ \text { Product Z } & 4,400 & 400 \\ \text { Product Q } & 5,600 & 1,600 \\ \text { Total } & 10,000 & 2,000 \end{array}\]

The Answer of Yang Corporation Has an Activity-Based Costing System with Three Activity\[\begin{array} { l c r } & \text { MHs } & \text { Batches } \\ \text { Product Z } & 4,400 & 400 \\ \text { Product Q } & 5,600 & 1,600 \\ \text { Total } & 10,000 & 2,000 \end{array}\]

Yang Corporation Has an Activity-Based Costing System with Three Activity\[\begin{array} { l c r } & \text { MHs } & \text { Batches } \\ \text { Product Z } & 4,400 & 400 \\ \text { Product Q } & 5,600 & 1,600 \\ \text { Total } & 10,000 & 2,000 \end{array}\]

The Answer of Yang Corporation Has an Activity-Based Costing System with Three Activity\[\begin{array} { l c r } & \text { MHs } & \text { Batches } \\ \text { Product Z } & 4,400 & 400 \\ \text { Product Q } & 5,600 & 1,600 \\ \text { Total } & 10,000 & 2,000 \end{array}\]

Solved

Yang Corporation Has an Activity-Based Costing System with Three Activity

question 43

Essay

Yang Corporation has an activity-based costing system with three activity cost pools-Machining, Batch Setup, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below. $Yang Corporation has an activity-based costing system with three activity cost pools-Machining, Batch Setup, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, have been allocated to the cost pools already and are provided in the table below. Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Batch Setup cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the company's two products and the company's costs appear below: \begin{array} { l c r } & \text { MHs } & \text { Batches } \\ \text { Product Z } & 4,400 & 400 \\ \text { Product Q } & 5,600 & 1,600 \\ \text { Total } & 10,000 & 2,000 \end{array} \begin{array} { l l l } & \text { ProductZ } & \text { ProductQ } \\ \text { Sales } & \$ 137,900 & \$ 173,300 \\ \text { Direct materials } & \$ 59,700 & \$ 43,400 \\ \text { Direct labor } & \$ 57,500 & \$ 96,000 \end{array} Required: a. Calculate activity rates for each activity cost pool using activity-based costing. b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. c. Determine the product margins for each product using activity-based costing.$
Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Batch Setup cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the company's two products and the company's costs appear below:
$\begin{array} { l c r } & \text { MHs } & \text { Batches } \\\text { Product Z } & 4,400 & 400 \\\text { Product Q } & 5,600 & 1,600 \\\text { Total } & 10,000 & 2,000\end{array}$
$\begin{array} { l l l } & \text { ProductZ } & \text { ProductQ } \\\text { Sales } & \$ 137,900 & \$ 173,300 \\\text { Direct materials } & \$ 59,700 & \$ 43,400 \\\text { Direct labor } & \$ 57,500 & \$ 96,000\end{array}$
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.
c. Determine the product margins for each product using activity-based costing.

Understand the basics of designing an experiment, including the selection of variables and the importance of randomization.

Analyze ANOVA (Analysis of Variance) tables to test hypotheses regarding mean differences among groups.

Interpret the results from ANOVA tests, including F-ratio and p-value, to make statistical decisions.

Understand the concept of interaction effects between variables in experimental designs.

Definitions:

Probability

The measure of the likelihood that an event will occur, expressed as a number between 0 and 1.

Y Chromosome

One of the two sex chromosomes of mammals and some other organisms; the Y chromosome determines male gender in humans; normal females are XX, normal males are XY. Compare with X chromosome.

Cystic Fibrosis

A hereditary disorder affecting the exocrine glands, causing the production of abnormally thick mucus, leading to blockage of the pancreatic ducts, intestines, and bronchi and resulting in respiratory and digestive problems.

Heterozygous

A genetic condition where an individual has two different alleles at a particular gene locus, one from each parent.