Refer to the information provided in P5-5. Assume the company employs six individuals who set up the equipment between runs of different products. Setup crew members devote approximately \(90 \%\) of their time to physically changing machine specifications and molds to accommodate a different product. In addition, they spend approximately \(10 \%\) of their time on special inspection activities. Crew salaries and related setup costs total \(\$ 200,000\) per year. Engineering studies indicate natural gas and other melting oven costs approximate \(\$ 700,000\) per year. The company employs two full-time quality control engineers, who each earn \(\$ 65,000\) annually. These engineers are responsible for special inspections ( \(75 \%\) of their time) but also work with setup crews ( \(25 \%\) of their time) to help minimize scrap rates. The company's three supervisors each earn \(\$ 70,000\) per year.

\section*{Required}

A. Using your diagram from P5-5 as a guide, allocate the costs to each activity pool.

B. For each activity pool in your diagram, identify a reasonable cost allocation base (second-stage cost driver). Justify your answer.