Pressler Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources.

Equipment depreciation (total)	$	29,400
Indirect labor (total)	$	7,380

Distribution of Resources Consumption Across Activity Cost Pools
	Machining	Setting up	Other
Equipment depreciation	0.30	0.20	0.50
Indirect labor	0.50	0.30	0.20

Costs in the Machining 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.

	MHs	Batches
Product S4	12,000	200
Product V6	3,600	1,800
Total	15,600	2,000

Additional data concerning the company's products appears below:

	Product S4		Product V6
Sales (total)	$	80,600	$	74,300
Direct materials (total)	$	25,400	$	29,300
Direct labor (total)	$	37,000	$	32,900

Required:
a.	Assign overhead costs to activity cost pools using activity-based costing. (Omit the "$" sign in your response.)

	Activity Cost Pools
	Machining	Setting up	Other	Total
Equipment depreciation	$	$	$	$
Indirect labor
Total	$	$	$	$

b.	Calculate activity rates for each activity cost pool using activity-based costing. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Activity Rate
Machining	$	per MH
Setting up	$	per batch

c.	Determine the amount of overhead cost that would be assigned to each product using activity-based costing. (Omit the "$" sign in your response.)

	Product S4	Product V6
Machining	$	$
Setting up
Total	$	$

d.	Determine the product margins for each product using activity-based costing. (Omit the "$" sign in your response.)

Product Margin

Product S4

$

Product V6

$

2)

b.	The company is considering the use of activity-based costing as an alternative to its traditional costing method for manufacturing overhead. Data relating to the company's activity cost pools for the current year are given below:

Total Activity

Activity Cost Pools	Total Cost		Product K-7	Product L-15	Total
Machine setups required	$	399,900	1,240	1,860	3,100
Purchase orders issued		53,325	503	172	675
Machine-hours required		112,140	7,560	11,130	18,690
Maintenance requests issued		250,056	728	928	1,656
	$	815,421

Using the data above and an activity-based costing approach, determine the unit product cost of each product for the current year. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Product K-7	Product L-15
Direct materials	$	$
Direct labour
Manufacturing overhead
Total unit product cost	$	$