1. Vaughan Sports Ball Company is in the process of establishing an ABC system for the manufacture of its water polo balls. It has identified 5 major activities for water polo ball production which are shown below. From the cost driver list, select the most appropriate cost driver for that activity. Possible Cost Drivers Number of Employees Number of Machine Setups Number of Quality Inspections Activity Materials Handling Machine Setups Factory Machine Maintenance Factory Supervision Quality Control Number of Units Sold Number of Purchase Requisitions Machine Hours Used 2. Bugs Bunny Creations is in the process of establishing an ABC system for the manufacture of its carrot flavored snack cakes. It has identified 7 major activities for production which are shown below. Determine if these activities are value added or non-value added. Activity Moving WIP to the next Department Machine Setups Factory Machine Maintenance Storing Finished Goods Packaging Design Engineering Quality Control 3. MJC Gourmet Popcorn Company uses ABC. The budgeted data for each of the activity cost pools is shown below for 2018. per Activity Expected Use of Cost Drivers Activity Cost Pools Ordering and Receiving Estimated FOH $135,000 Food Processing $200,000 Packaging $15,000 15,000 orders 100,000 machine hours 60,000 labor hours During 2018, 10,000 orders were actually made, 50,000 machine hours were used, and only 30,000 labor hours were used. Calculate the overhead rates for each activity. Activity Ordering and Receiving Food Processing Packaging