Groleau Corporation has an activity-based costing system withthree activity cost pools--Processing, Setting Up, and Other. Thecompany's overhead costs, which consist of factory utilities andindirect labor, are allocated to the cost pools in proportion tothe activity cost pools' consumption of resources. Costs in theProcessing cost pool are assigned to products based onmachine-hours (MHs) and costs in the Setting Up cost pool areassigned to products based on the number of batches. Costs in theOther cost pool are not assigned to products. Data concerning thetwo products and the company's costs and activity-based costingsystem appear below:

Factory utilities (total)	$	34,100
Indirect labor (total)	$	10,900

Distribution of Resource Consumption Across Activity CostPools

	Processing	Setting Up	Other
Factory utilities	0.40	0.20	0.40
Indirect labor	0.30	0.30	0.40

	MHs	Batches
Product S8	3,300	1,300
Product F1	7,100	800
Total	10,400	2,100

	Product S8			Product F1
Sales (total)	$	66,200		$	97,800
Direct materials (total)	$	22,900		$	34,800
Direct labor (total)	$	29,600		$	43,700

Required:

a. Assign overhead costs to activity cost pools usingactivity-based costing.

b. Calculate activity rates for each activity cost pool usingactivity-based costing.

c. Determine the amount of overhead cost that would be assignedto each product using activity-based costing.

d. Determine the product margins for each product usingactivity-based costing.

	Activity Cost Pools Processing Setting Up Other Total Factory utilities Indirect labor Total

Activity Cost Pools	Activity Rate
Processing		per MH
Setting up		per batch

	Amount of Overhead Cost Product S8 Product F1

	Product Margin Product S8 Product F1