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 Bling Dieging trenches Janitorial Machine maintenance Machine setups Molding Packaging Payroll Plant supervision Product design Purchasing materials Selling Testing Welding 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 es. 1225) WATERWAYS CORPORATION Expected Use of Cost Activity Cost Estimated Drivers per Actual Use of Pools Cost Drivers Overhead Activity Drivers Irrigation installation Labor cost $1,983.000 13.220 13.200 Machining (all machine use) Machine hours 1,798,600 35.972.000 35.973.000 Customer orders Number of orders 31.850 2.450 2.411 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, s. 1225) WATERWAYS CORPORATION Expected Use of Cost Activity Cost Estimated Drivers per Actual Use of Pools Cost Drivers Overhead Activity Drivers Irrigation installation Labor cost $1,983,000 13,220 13.200 Machining (all machine use) Machine hours 1,798,600 35,972,000 35,973,000 Customer orders Number of orders 31.850 2,450 2,411 Shipping none (direct) N/A NA traced directly Design Cost per design 760 Selling Number of sales calls 350,400 21,900 22,090 WATERWAYS CORPORATION Activity Based Overhead Rates Activity Cost Pools Actual Cost Assigned Irrigation installation Machining (all machine use) Customer orders Design Selling