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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: 10 points Activity Cost Pools eBook Print References Processing Setting Up Other $56,800 $14,200 $29,000 MHs 8,500 12,500 21,000 Batches 450 1,050 1,500 Product D7 Product HO Total Product D7Product HO $ 217,800 303,600 Sales (total) Direct materials (total) Direct labor (total) $ 73,100 145,700 $106,450 96,700 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 10 points 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. eBook Print References Complete this question by entering your answers in the tabs below. Required ARequired B Rquired C Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Machining Setting up Activity Rate per MH per batch Required A Required B
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