Question
Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
Angel Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system:
| Activity Cost Pools (and Activity Measures | Estimated Overhead Cost |
| Machine related (machine-hours) | 81,600 |
| Batch setup (setups). | 387,000 |
| General factory (direct labour-hours). | 274,800 |
| Expected Activity | |||
| Activity Cost Pools | Total | Product X | Product Y |
| Machine related | 8,000 | 3,000 | 5,000 |
| Batch setup | 10,000 | 2,000 | 8,000 |
| General factory | 12,000 | 7,000 | 5,000 |
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
13th Canadian edition
133405508, 978-0133405507
