Business, 03.04.2020 01:03 19jcormier

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 $58,600
Setting Up $16,900
Other $29,900

MHs Batches
Product D7 9,400 900
Product H0 13,400 1,500
Total 22,800 2,400

Product D7 Product H0
Sales (total) $222,300 $308,100
Direct materials (total) $74,000 $146,600
Direct labor (total) $106,540 $97,600

a. Calculate activity rates for each activity cost pool using activity-based costing.

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Zwahlen Corporation has an activity-based costing system with three activity cost pools--Processing,...

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