Zwahlen Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and...
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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 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 $ 15,709 $ 29,500 Product D7 Product HD MHS 9,000 13,009 22,000 Batches 709 1,300 2,000 Total Sales (total) Direct materials (total) Direct labor (total) Product D7 $ 220,300 $ 73,609 $ 106,500 Product Ho $ 306,109 $ 146,200 $ 97,200 Required: a Calculate activity rates for each activity cost pool using activity-based costing b. Deternitine 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 Calculate activity rates for each activity cost pool using activity-based costin (Round your answers to 2 decimal places.) Activity Cost Pools Machining Setting up S Activity Rate 263 per MH 7.85 per batch $ REA Required B > 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 $ 15,700 $ 29,500 Product D7 Product HO MHS 9,000 13,000 22,009 Batches 700 1,300 2,000 Total Sales (total) Direct materials (total) Direct labor (total) Product D7 $ 220,300 $ 73,600 $ 106,500 Product HD $ 306,100 $ 146,200 $ 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C 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 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 $ 15,790 $ 29,500 Product 17 Product HO MHS 9,000 13,000 22,000 Batches 790 1,300 2,000 Total Sales (total) Direct materials (total) Direct labor (total) Product D7 $ 220,300 $ 75,600 $ 106,500 Product Ho $ 306,100 $ 146,200 $ 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. Complete this question by entering your answers in the tabs below. Required A Required B Required Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) Product Margin Product D7 Product HO
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