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Direct labor or machine hours may not be the appropriate cost dinver for overhead in alf areas of manufacturing due to the complexities of many

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Direct labor or machine hours may not be the appropriate cost dinver for overhead in alf areas of manufacturing due to the complexities of many manufacturingprocesses. Marry companies use activity based tosting (ABCO which uses multiple drivers (items that conaume resourcen) rather than just one driver to apply overhead to their activities. With ABC. a company can use a cost driner that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of cuttins because of the variety of items it produces and the many Gifferent activities in which in is imvoled The axtlivities listed below area sample of possible cost pooh for Waterways. (b) Using the following information, determine the overhead rates and the actual cost ansigned for each of the sctivity cost pools in a possble ABC nystem for Waterways. (Round answers to 2 decimal places. [1225]

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