XYZ. uses an activity-based costing system with three activity cost pools--Machining, Setting Up, and Other. The company's overhead costs have been allocated to the cost pools as follows: $25,200 for the Machining cost pool, $17,200 for the Setting Up cost pool, and $41,600 for the Other cost pool.

Costs in the Machining 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 appear below:

	MHs	Batches
Product A	6,600	200
Product B	3,400	800
Total	10,000	1,000

	Product A	Product B
Sales (total)	$ 252,600	$ 172,800
Direct materials (total)	$ 125,100	$ 96,900
Direct labor (total)	$ 95,200	$ 48,100

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.