Greife Corporation's activity-based costing system has three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows:

Machining	$	109,820
Setting Up	$	100,282
Other	$	22,200

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 K0	2,770	1,440
Product W9	8,790	590
Total	11,560	2,030

Additional data concerning the company's products appears below:

	Product K0		Product W9
Sales (total)	$	298,000	$	282,000
Direct materials (total)	$	83,900	$	84,800
Direct labor (total)	$	99,000	$	65,000

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.

• Required A
• Required B
• Required C

Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.)

A

Activity Cost Pools	Activity Rate
Machining		per MH
Setting up		per batch

Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.)

B

	Amount of Overhead Cost
Product K0
Product W9

Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.)

C

	Product Margin
Product K0
Product W9