Sams 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 64,000

Indirect Labor 50,000

Distribution of Resource Consumption Across Activity Cost Pools

	Processing	Setting up	Other
Factory Utilities	0.5	0.2	0.3
Indirect Labor	0.7	0.2	0.1

	MHs	Batches
Product H5	1,000	300
Product V3	4,000	600
Total	5,000	900

	Product H5	Product V3
Sales	300,000	298,000
Direct Materials	115,400	114,800
Direct Labor	65,400	35,600

Required:

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.