Zwahlen Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. Costs inthe Processing cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assignedto products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the twoproducts and the company's costs and activity-based costing system appear below:Activity Cost PoolsProcessingSetting UpOtherProduct D7Product HOTotalSales (total)Direct materials (total)Direct labor (total)$ 59,800$ 18,700$ 30,500MHS10,00014,00024,000Batches1,2001,8003,000Activity Rateper MHper batchProduct D7$225,300$ 74,600$ 106,600Product HO$ 311,100$ 147,200$ 98,200Required: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 BRequired CCalculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places.)Activity Cost PoolsProcessingSetting up

Cost accounting is one of the important branch of accounting, under this different type of costs are…

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) $ 59,800 $ 18,700 $ 30,500 Mis 10,000 14,000 24,000 Batches 1,200 1,800 3,000 Product D7 $225,300 $ 74,600 $ 106,600 Product HO $ 311,100 $ 147,200 $ 98,200 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.

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) $ 59,800 $ 18,700 $ 30,500 Mis 10,000 14,000 24,000 Batches 1,200 1,800 3,000 Product D7 $225,300 $ 74,600 $ 106,600 Product HO $ 311,100 $ 147,200 $ 98,200 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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