Market Corporation Has an Activity-Based Costing System with Three Activity $\begin{array}{ll}\text { Factory utilities } & \$ 39,000 \\\text { Indirect labor } & \$ 3,000\end{array}$

question 31

Essay

Market Corporation has an activity-based costing system with three activity cost pools-Processing, Batch Setup, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Data concerning the company's costs and activity-based costing system appear below:
$\begin{array}{ll}\text { Factory utilities } & \$ 39,000 \\\text { Indirect labor } & \$ 3,000\end{array}$

$$\begin{array}{l}\text { Distributim of Resaure Cmsumption Acrass Activity Cast Paols }\\\begin{array} { | l | c | c | c | } \hline & \text { Processing } & \text { Batch Setup } & \text { Other } \\\hline \text { Factary utilities } & 0.10 & 0.60 & 0.30 \\\hline \text { Indirect labor } & 0.30 & 0.10 & 0.60 \\\hline\end{array}\end{array}$$
Required:
Assign overhead costs to activity cost pools using activity-based costing.

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Definitions:

Issuing Company

The entity that offers its securities for sale to investors to raise capital, commonly through stocks or bonds.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's worth on paper.

Accounting Loss

The situation where a company's total expenses exceed its revenues, leading to a negative income figure in the financial statements.