Zwahlen Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. Costs the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assign 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 $ 15,700 Product D7 Product HO Total $ 29,500 MHs Batches 9,000 700 13,000 1,300 22,000 2,000 Product D7 Product HO Sales (total) Direct labor (total) $ 220,300 $ 306,100 Direct materials (total) $ 73,600 $ 146,200 $ 106,500 $ 97,200 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.