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Direct labor or machine hours maynot be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing

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Direct labor or machine hours maynot be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes Mamy companles use activity-based costing (ABC) which uses multiple dirivers (iten that consumeresources) nather than just one driver to apply overhead to their activities. With ABC, a company can use a cost drive that has a direct causedeffect refationshipin 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: 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. 12.25.) How would you clansify each of the followine activitis by levei-urit fevef, batch level, product fevel, or facility leves

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