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Zwahlen 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
Zwahlen 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 Setting Up Other Product D7 Product HO Total $ 57,200 $ 14,800 $ 29, 200 MHs Batches 8, 700 550 12, 700 21, 400 1, 150 1,700 Sales (total) Direct materials (total) Direct labor (total) Required: Product D7 Product HO $ 218, 800 $ 304, 600 $ 73, 300 $ 106,470 $ 145, 900 $ 96,900 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Processing Setting up Activity Rate per MH per batch Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Amount of Overhead Cost Product D7 Product HO Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Product D7 Product HO Product Margin
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