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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 $ 59,000 $ 17,500 $ 30,100 MHs Batches Product D7 Product HO Total 9,600 1,000 13,600 1,600 23,200 2,600 Product D7 Product HO $ 223,300 $ 309,100 Direct materials (total) $ 74,200 $ 106,560 $ 146,800 $ 97,800 Sales (total) Direct labor (total) 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. 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: Required A Required B >
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