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A. Calculate activity rate (per MH) for Machining Calculate activity rate (per batch) for Setting up B. Determine the amount of overhead cost for: Product D7 and Product H0 C. Determine the product margins for each product:Product D7 and Product H0

John Richards 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 $57, 400 Setting Up $15, 100 Other $29, 300 MHS Batches Product D7 8, 800 600 Product HO 12, 800 1, 200 Total 21, 600 1, 800 Product D7Product HO Sales (total ) $ 219,300 $ 305, 100 Direct materials (total) $ 73, 400 $ 146,000 Direct labor (total) $ 106, 480 $ 97,000 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

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