1. Simba Company manufactures two paint products: Paint A and Paint B. The company uses the same processing equipment to product both products. Between batches, the processing equipment must be washed and cleaned. After analyzing the company's entire operations, Simba's accountant and production managers have identified activity cost pools and accumulated annual budgeted overhead costs by pool as follows: Activity Center Purchasing Processing Packaging Testing Storage Washing Estimated Overhead 250,000 1,410,000 600,000 230,000 220,000 590,000 3,300,000 Following further analysis, activity cost drivers were identified and their expected use by product and activity were scheduled as follows: Expected use of Drivers Activity Center Cost Drivers Expected Cost Drivers per Activity per Product Paint A Paint B Purchasing Purchase orders 1,500 orders 900 600 Processing Liters processed 1,000,000 liters 500,000 500,000 Packaing Containers filled 400,000 containers 220,000 180,000 Testing Number of tests 4,000 test 1,800 2,200 Storing Average litters on hand 18,000 liters 10,500 7,500 Washing Number of batches 800 batches 300 500