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