Groleau Corporation has an activity based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing 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. Data concerning the two products and the company's costs and activity-based costing system appear below:

Factory utilities (total)

Indirect labor (total)

$ 34,000

$ 11,700

Distribution of Resource Consumption Across Activity Cost Pools

Factory utilities

Indirect labor

Processing

0.30

0.20

Setting Up

0.40

0.30

Other

0.30

0.50

Product 58

Product F1

Total

MHs

3,300

7,900

11,200

Batches

1,500

700

2,200

Sales (total)

Direct materials (total)

Direct labor (total)

Product 58

$ 73,500

$

22,000

$ 28,900

Product F1

$ 96,300

$

37,100.

$

35,400

Required:

1. Assign overhead costs to activity cost pools using activity-based costing.
2. Calculate activity rates for each activity cost pool using activity-based costing
3. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.
4. Determine the product margins for each product using activity-based costing.

Groleau Corporation has an activity based costing system with three activity cost pools-Processing. Setting Up, and Other. The company's overhead costs, which consist of factory utiities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing 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. Data concerning the two products and the company's costs and activity-based costing system appear betow. Distribution of Resource Consumption Across Activity Cost Pools a. Assign overhead costs to activity cost pools using activity-based costing. b. Calculate activity rates for each activity cost pool using activity-based costing. c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing d. Determine the product margins for each product using activity-based costing