Following are the selected account balances of Randa Company:

Exercise 18-12 Income statement preparation L.O. P2

Following are the selected account balances of Randa Company:

Sales	$	1,078,000
Raw materials inventory, Dec. 31, 2010		38,000
Goods in process inventory, Dec. 31, 2010		55,000
Finished goods inventory, Dec. 31, 2010		66,800
Raw materials purchases		172,700
Direct labor		242,000
Factory computer supplies used		22,900
Indirect labor		59,000
Repairs—Factory equipment		7,250
Rent cost of factory building		50,000
Advertising expense		105,000
General and administrative expenses		129,000
Raw materials inventory, Dec. 31, 2011		40,500
Goods in process inventory, Dec. 31, 2011		44,500
Finished goods inventory, Dec. 31, 2011		71,600

Prepare an income statement for Randa Company (a manufacturer). Assume that its cost of goods manufactured is $561,850. (Input all amounts as positive values. Omit the "$" sign in your response.)

RANDA COMPANY Income Statement For Year Ended December 31, 2011
Sales		$ 1,078,000
Cost of goods sold
Finished goods inventory, December 31, 2010	$ 66,800
Cost of goods manufactured	561,850
Cost of goods available for sale	628,650
Less: Finished goods inventory, December 31, 2011	71,600
Cost of goods sold		557,050
Gross profit		520,950
Operating expenses
General and administrative expenses
Advertising expenses
Total operating expenses		234,000
Operating income		$ 286,950

Yoke Corporation has provided the following data from its activity-based costing accounting system:

Yoke Corporation has provided the following data from its activity-based costing accounting system:

Supervisory wages	$	86,200
Factory Utilities	$	296,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools	Batch set-ups		Unit Processing		Other		Total
Supervisory wages	62	%	37	%	1	%	100	%
Factory Utilities	32	%	64	%	4	%	100	%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs that are not assigned to products.

Required:

a.	Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the unit Processing activity cost pool. (Omit the "$" sign in your response.)

Total amount

$

b.	Determine the total amount of supervisory wages and factory utilities costs that would be allocated to the Other cost pool. (Omit the "$" sign in your response.)

Total amount

$

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs)

Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The following table shows the machine-hours and number of batches associated with each of the company's two products:

	MHs	Batches
Product E8	2,580	1,330
Product V8	8,450	1,180
Total	11,030	2,510

Additional data concerning the company's products appears below:

	Product E8		Product V8
Sales (total)	$	273,000	$	273,000
Direct materials (total)	$	88,300	$	83,500
Direct labor (total)	$	99,400	$	66,300

Required:
a.	Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Activity Rate
Machining	$	per MH
Setting up	$	per batch

b.	Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Omit the "$" sign in your response.)

	Product E8	Product V8
Machining	$	$
Setting up
Total	$	$

c.	Determine the product margins for each product using activity-based costing. (Omit the "$" sign in your response.)

	Product Margin
Product E8	$
Product V8	$