Jameson 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 ) $ 24, 000 Indirect labor ( total ) 3, 000 Distribution of Resource Consumption Across Activity Cost Pools Processing Setting Up Other Factory utilities 0. 30 0. 40 0. 30 Indirect labor* 0 . 10 0. 40| MHS Batches Product S8 2, 200 700 Product F 1 7. 800 300 Total 10, 000 1, 000 Product S8 Product F 1 Sales ( total ) $ 64, 000 $ 68 , 700 Direct materials ( total ) $28, 000 $ 19, 800 Direct labor ( total ) $ 25 , 300 $ 36, 700 Required ( 4 points each ) : 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