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 Payroll Billing Plant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Testing Molding 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, e.g. 12.25.) WATERWAYS CORPORATION 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 $1,914,030 1,830,900 30,030 N/A 792 340,800 Expected Use of Cost Drivers per Actual Use of Activity Drivers 12,510 12,493 36,618,000 36,619,000 2,310 2,283 N/A traced directly 8 7 21,300 21,500 WATERWAYS CORPORATION Activity- Based Overhead Rates Activity Cost Pools Actual Cost Assigned Irrigation installation Machining (all machine use) Customer orders Design Selling