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 Product D7 Product Ho Total Sales (total) Direct materials (total) Direct labor (total) $57,800 $15.700 $ 29,500 Mis 9,000 13,000 22,000 Activity Rate per MH Batches 700 1,300 2,000 Product D7 $ 220,300 $ 73,600 $ 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 C Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Processing
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 Product D7 Product Ho Total Sales (total) Direct materials (total) Direct labor (total) $57,800 $15.700 $ 29,500 Mis 9,000 13,000 22,000 Activity Rate per MH Batches 700 1,300 2,000 Product D7 $ 220,300 $ 73,600 $ 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 C Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.) Activity Cost Pools Processing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
Product D7
Product HO
Total
Sales (total)
Direct materials (total)
Direct labor (total)
La
$ 57,800
$15,700
$ 29,500
Required A Required B
MHS
9,000
13,000
22,000
Activity Rate
per MH
Batches
700
1,300
2,000
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.
Product D7
$ 220,300
$73,600
$ 106,500
Required. C
Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.)
Activity Cost Pools
Processing
Product HO
$ 306,100
$ 146,200
$ 97,200
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