Zwahlen Corporation has an activity-based costing system.

• Costs in the Processing cost pool are assigned to products based on machine-hours (MHs)
• 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	$	58,400
Setting Up	$	16,600
Other	$	29,800

	MHs	Batches
Product D7	9,300	850
Product H0	13,300	1,450
Total	22,600	2,300

	Product D7		Product H0
Sales (total)	$	221,800	$	307,600
Direct materials (total)	$	73,900	$	146,500
Direct labor (total)	$	106,530	$	97,500

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.