Alcorn Ltd. manufactures various computer components in Jackson Mississippi. The following are budgeted for January

Insurance plant $780,000

Electricity, machinery $156,000

Electricity, light $78,000

Engineering, design $793,000

Deprecation, plant $910,000

Deprecation, machinery $1,820,000

Custodial wage, plant $52,000

Equipment maintenance, wage $ $195,000

Equipment maintenance, parts $ 39,000

Setup wages $ 52,000

Inspection of finished goods $39,000

Property taxes $ 156,000

Natural gas, heating $39,000

Raw materials components $ 3,835,000

Divide these cost into activity cost pools, and identify a cost driver for assigning each pool of cost to products. Calculate the total cost in each activity cost pool.

Activity Cost Pools		Activity pool cost	Cost Driver
machine related			Machine hours
set up			Production runs
purchasing			purchase orders
material handling			Productions runs
quality assurance			inspection hours
packing/shipping			shipments
engineering design			engineering hour
facility			machine hours