Apt in Progress Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below area sample of possible cost pools for Waterways. Assembling Billing Payroll Plant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Molding Testing Welding Packaging Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, eg 12.25) WATERWAYS CORPORATION Activity Cost Pools Cost Drivers Estimated Overhead Irrigation installation Labor cost $2,160,600 13.850 Expected Use of Cost Drivers per Activity Actual Use of Drivers 13,828 Machining (all machine use) Machine hours 1668,300 33,366,000 33,367,000 Customer orders Number of orders 30,840 2,570 2,537 Shipping none (direct) N/A N/A traced directly Design Cost per design 846 9 8