ABC Inc, produces a single product, In doing so, the company incurs overhead costs as follows Indirect Factory Wages: Factory Utilities: Factory Depreciation: $1 , $ 40,000 $ 60,000 The company uses an activity-based costing system which compiles costs into 3 cost pools, machining, milling and assembly The costs allocated to these activity cost pools break down as follows Usage Cost: Indirect Factory Wages: Factory Utilities: Factory Depreciation: Machining Milling Assembly 40% 30% 3ex 40% 40% 203 10% 90% ex The budgeted total cost of the Machining activity is