CAT PRINTER VERSION BACK NEYTI 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 test produces and the many different activities in which it is involved. The active isted below area sample possible cost pools for Waterways Assembling Payroll Biling Pant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Testing Molding Welding Packaging Your answer is incorrect. Try again. Using the following information, determine the overhead rates and the actual cout assigned for each of the activity cout pools in a possible ABC tem for Waterways (owned andwers to decimal places, 0.12.25.) WATERWAYS CORPORATION Expected Use of Cost Activity Cast Estimated Drivers per Actual Use of Pools Cost Drivers Overhead Activity Drivers Irrigation installation Labor cost $2,002,200 14,100 14,077 Machining all machine use) Machine hours 1,005,500 16.110,000 36,111,000 Customer orders Number of orders 29,720 2,290 2,252 Shipping none (direct) N/A N/A traced directly Design Cost per design 896 B 2 Selling Number of sales calls 361,500 24,100 24,310 WATERWAYS CORPORATION Activity Based Actual Activity Cest Overhead Cost Pools Rates Assigned WATERWAYS CORPORATION Actual Use of Drivers Activity Cost Pools Cost Drivers Irrigation Installation Labor cost Machining (all machine use) Machine hours Customer orders Number of orders Shipping none (direct) Design Cost per design Selling Number of sales calls Estimated Overhead $2,002,200 1,805,500 29,770 N/A 896 361,500 Expected Use of Cost Drivers per Activity 14,100 36,110,000 2,290 N/A 14,077 36,111,000 2,252 traced directly 7 24,310 8 24,100 WATERWAYS CORPORATION Activity- Based Activity Cost Overhead Pools Rates Actual Cost Assigned Irrigation Installation Machining (all machine use) Customer orders Doo olidi Design Selling LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. How would you classify each of the following activities by level-unit level, batch level, product level or faili