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

question 30

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

Definitions:

Anthropoids

The suborder of primates that includes New World monkeys, Old World monkeys, and apes (including humans).

Taxonomically

Pertaining to taxonomy, the science of classification, especially in biology for the classification of organisms into a systematic framework such as kingdoms, phyla, and species based on shared characteristics and genetic heritage.

Collarbone (Clavicle)

A bone located horizontally across the front of the shoulder, connecting the arm to the body.

Primates

An order of mammals that includes humans, apes, monkeys, and prosimians, characterized by large brains, forward-facing eyes, and opposable thumbs.