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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
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 $ 57,800 Product D7 Product HO Total $ 15,700 $ 29,500 MHS Batches 9,000 700 13,000 1,300 22,000 2,000 Sales (total) Direct materials (total). Direct labor (total) Required: Product D7 Product HO $ 220 300 $ 306,100 $ 73,600 $ 146,200 $ 106,500 $ 97,200 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. Calculate activity rates for each activity cost pool using activity-based costing. (Round your ans Activity Cost Pools Activity Rate: Processing Setting up 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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