Murri Corporation has an activity-based costing system with three activity cost pools-Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. 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:

Factory utilities (total)	$	37,500
Indirect labor (total)	$	15,600

Distribution of Resources Consumption Across Activity Cost Pools
	Processing	Setting up	Other
Factory utilities	0.30	0.30	0.40
Indirect labor	0.30	0.10	0.60

	MHs	Batches
Product X7	3,100	1,500
Product L4	7,600	1,100
Total	10,700	2,600

	Product X7		Product L4
Sales (total)	$	75,700	$	96,400
Direct materials (total)	$	26,000	$	35,600
Direct labor (total)	$	33,700	$	38,800

Assign overhead costs to activity cost pools using activity-based costing.

Activity Cost Pools

Processing Setting up Other Total

Factory utilities

Indirect labor

Total

2) Calculate activity rates for each activity cost pool using activity-based costing

Activity Rate

Processing $ per MH

Setting up $ per batch

3) Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

	Product X7	Product L4
Processing	$	$
Setting up
Total	$	$