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Excel Manufacturing has an activity-based costing system with three activity cost pools-Machining, Batch Setup,...

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Accounting

Excel Manufacturing has an activity-based costing system with three activity cost pools-Machining,
Batch Setup, and Other. The company's overhead costs have already been allocated to the cost pools
and total $28,000 for the Machining cost pool and $13,800 for the Batch Setup cost pool.
Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in
the Batch Setup cost pool are assigned to products based on the number of batches. Data concerning
the two products and the company's costs appear below:
Required:
a. Calculate activity rates for each activity cost pool using activity-based costing.
Machining
Batch Setup
b. Determine the amount of overhead cost that would be assigned to each product using activity-based
costing.
Product A
Product B
c. Determine the product margins (Gross Profit) for each product using activity-based costing.
Product A
Product F

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