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.

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Definitions:

Record on Appeal

A complete collection of all documents, evidence, and transcripts from a trial court that are presented to an appellate court for review.

Clerk of the Court

An officer who manages the clerical operations and keeps records for a court.

Preponderance of the Evidence

The standard of proof in most civil cases, requiring that the argument that's more convincing and has greater weight wins.

Scintilla of Evidence

A very small amount of proof that may suggest something is true but does not guarantee its truth.