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Activity Cost Pool Assembly Processing orders Inspection Total Cost $ 942,480 $ 85,050 Table 1 Total Activity 66,000 machine-hours 1,800 orders $ 126,854 1,820

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Activity Cost Pool Assembly Processing orders Inspection Total Cost $ 942,480 $ 85,050 Table 1 Total Activity 66,000 machine-hours 1,800 orders $ 126,854 1,820 inspection-hours Table 2 Activity Cost Pool Total Cost Total Activity Assembly $ 1,114,920 57,000 machine-hours Processing orders $ 47,016 1,800 orders Inspection 107,328 1,560 inspection-hours Costs: Factory Rent Factory Depreciation Factory Utilities Total Distribution of resource consumption: Table 3 $ 373,000 150,000 250,000 $ 773,000 Activity Cost Pools Total Fixing Cutting Polishing Factory Rent 60% 20% 20% 100% Factory Depreciation 35% 20% 45% 100% Factory Utilities 20% 60% 20% 100%

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