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)	$	38,700
Indirect labor (total)	$	13,400

Distribution of Resource Consumption Across Activity Cost Pools

	Processing	Setting Up	Other
Factory utilities	0.20	0.50	0.30
Indirect labor	0.30	0.30	0.40

	MHs	Batches
Product S8	3,500	700
Product F1	7,300	600
Total	10,800	1,300

	Product S8			Product F1
Sales (total)	$	80,800		$	100,500
Direct materials (total)	$	27,500		$	40,300
Direct labor (total)	$	33,900		$	35,300

Required:

a. Assign overhead costs to activity cost pools using activity-based costing.

	Activity Cost Pools
	Processing	Setting Up	Other	Total
Factory utilities
Indirect labor
Total

b. Calculate activity rates for each activity cost pool using activity-based costing.

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

c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing

	Amount of Overhead Cost
Product S8
Product F1

d. Determine the product margins for each product using activity-based costing.

	Product Margin
Product S8
Product F1