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:

Product A

Product B

Total

MHs

Batches

5,200

14,800

500

500

20.000

1,000

Sales (total)

Direct materials (total)

Direct labor (total)

Required:

Product A

$124,300

$53,100

$54,000

Product B

$166,000

$71,500

$56,600

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 B

1. 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 batehes. 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 B