Mill Creek Company, located in Lakeside, Oregon, manufactures travel trailers and toy haulers. Mill Creeks management team has just completed the budget for the upcoming year and has estimated the following costs:

Name of Budgeted Cost	Budgeted Cost
Plant insurance		$	86,100
Testing raw materials			45,000
Manufacturing equipment setup			7,200
Quality inspections			57,000
Property taxes			23,000
Electricity, plant			14,000
Electricity, manufacturing equipment			51,250
Depreciation, plant			18,800
Depreciation, manufacturing equipment			36,700
Maintenance worker (manufacturing equipment)			22,500
Indirect labor (manufacturing equipment setup)			8,300
Design engineering			220,000

Required:
1.	Assign each of the budgeted costs above to one of the following activity cost pools:
	Engineering
	Equipment setup
	Quality control
	Factory facilities
	Manufacturing equipment

2.	Compute the total cost of each pool.
3.	Indicate whether the activities in each pool are unit, batch, product, or facility level.
4.	Identify the most likely driver for each cost pool from the following list:
	Number of inspections/tests
	Square feet
	Machine hours
	Engineering hours
	Number of setups

Use the following table to organize your answer. The engineering cost pool is done as an example. Other pools may have more than one cost item included.

Activity Cost Pool	1. Costs Included in Pool	2. Total Cost of Pool	3. Unit, Batch, Product, or Facility	4. Cost Driver
Engineering	Design engineering	$220,000	Product	Engineering Hours
Equipment setup
		$0
Quality Control
		$0
Factory Facilities
		$0
Manufacturing Equipment
		$0