Wasden Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. 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:

ACTIVITY COST POOLS

PROCESSING 12,200 SETTING UP 25,100 OTHER 17,700

MHS BATCHES

PRODUCT C7 2,400 700

PRODUCT P8 17,600 300

TOTAL 20,000 1,000

PRODUCT C7 PRODUCT P8

SALES (TOTAL) 135,700 98,000

DIRECT MATERIALS (TOTALS) 61,700 31,000

DIRECT LABOR (TOTAL) 52,200 45,800

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.