Question
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 $ 59,400 $ 18,100 Product D7 Product HO Total $ 30,300 Batches 9,800 1,100 13,800 1,700 23,600 2,800 Product HO Sales (total) Direct materials (total) Direct labor (total) Required: Product D7 $ 224,300 $ 310,100 $ 74,400 $ 147,000 $ 106,580 $ 98,000 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 Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Product Margin Product D71 Product HO
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