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
Required:a. Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) c. Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.)

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 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
  Required:a. Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) c. Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.)

Quizplus · Accepted Answer

The Answer of 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
  Required:a. Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) b. Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Round intermediate calculations to 2 decimal places.) c. Determine the product margins for each product using activity-based costing. (Round intermediate calculations to 2 decimal places.)

Zwahlen Corporation Has an Activity-Based Costing System with Three Activity