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Norton Chemical Company produces two products: Amithol and Bitrite. The company uses activity-based costing (ABC) to allocate manufacturing overhead to these products. The costs incurred

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Norton Chemical Company produces two products: Amithol and Bitrite. The company uses activity-based costing (ABC) to allocate manufacturing overhead to these products. The costs incurred by Norton's Purchasing Department average $80,000 per year and constitute a major portion of the company's total manufacturing overhead Purchasing Department costs are assigned to two activity cost pools: (1) the order cost pool and (2) the inspection cost pool Costs are assigned to the pools based on the number of employees engaged in each activity of the department's five full-time employees, one is responsible for ordering raw materials, and four are responsible for inspecting incoming shipments of materials Costs assigned to the order pool are allocated to products based on the total number of purchase orders generated by each product line. Costs assigned to the inspection pool are allocated to products based on the number of inspections related to each product line For the upcoming year, Norton estimates the following activity levels. Purchase orders generated Inspections conducted Total 10.000 2,400 Amithol 2,080 1,800 Bitrite 8,000 600 In a normal year, the company conducts 2.400 inspections to sample the quality of raw materials. The large number of Amithol related inspections is due to quality problems experienced in the past. The quality of Bitrite materials has been consistently good Required: a. Assign the Purchasing Department's costs to the individual cost pools. b. Allocate the order cost pool to the individual product lines c. Allocate the inspection cost pool to the individual product lines Complete this question by entering your answers in the tabs below. Required A Required B Required Assign the Purchasing Department's costs to the individual cost pools. % of total Assigning purchasing department costs to activity pools Step 1 Employees responsible for ordering Employees responsible for inspecting Employees in the department Step 2 Costs assigned to the order cost pool Costs assigned to the inspection cost pool Total costs assigned to cont pools 0 0% $ 0 Required B Required A Required B Required Allocate the order cost pool to the individual product lines. % of total Order cost pool allocated to product lines Step 1 Purchase orders for Amithol Purchase orders for Bitrite Total purchase orders Step 2 Costs assigned to Amithol Costs assigned to Bitrite Total order costs allocated to products 0 0% $ 0 Required A Required B Required C Allocate the inspection cost pool to the individual product lines. % of total 0% Inspection cost pool allocated to product lines Step 1 Inspections for Amithol Inspections for Bitrite Total inspections Step 2 Costs allocated to Amithol Costs allocated to Bitrite Total inspection costs allocated to products $ 0

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