4 :12Zwahlen Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Otherin the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost poolassigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Dataconcerning the two products and the company's costs and activity-based costing system appear below:Activity Cost PoolsProcessingSetting UpOtherProduct D7Product HØTotalSales (total)Direct materials (total)Direct labor (total)$56,400$13,600$28,800MHs8,30012,30020,600 1,300Required A Required BRequired: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.Batches350950Product ProductD7HØ$216,800 $302,600$72,900 $ 145,500$ 106,430 $ 96,500Required CActivity Rateper MHCalculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.)Activity Cost PoolsMachiningSetting upper batch< Required ARequired B >

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Description: 4 :12Zwahlen Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Otherin the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost poolassig

Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…

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Zwahlen Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Othe in the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool 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 HØ Total Sales (total) Direct materials (total) Direct labor (total) $56,400 $13,600 $28,800 MHS 8,300 12,300 20,600 1,300 Batches 350 950 Product Product D7 $216,800 НО $302,600 $ 72,900 $145,500 $ 106,430 $ 96,500 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.

Zwahlen Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Othe in the Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool 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 HØ Total Sales (total) Direct materials (total) Direct labor (total) $56,400 $13,600 $28,800 MHS 8,300 12,300 20,600 1,300 Batches 350 950 Product Product D7 $216,800 НО $302,600 $ 72,900 $145,500 $ 106,430 $ 96,500 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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 18E: Lean manufacturing uses value streams to produce a family of products that require the same...

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