Oak Signs makes customized wooden signs for businesses and residences. These signs are made of wood, which the owner glues and carves by hand or with power tools. After carving the signs, she paints them or applies a natural finish. She has a good sense of her labor and materials cost behavior, but she is concerned that she does not have good measures of other support costs. Currently, she predicts support costs to be 80% of the cost of materials. Close investigation of the business reveals that $45 times the number of power tool operations is a more plausible and reliable support cost relationship. Consider estimated support costs of the following two signs that Oak Signs is making: :: (Click the icon to view the estimated support costs.) Requirements 1. Prepare a report showing the support costs of both signs using each cost driver and showing the differences between the two. 2. What advice would you give Oak Signs about predicting support costs? Requirement 1. Prepare a report showing the support costs of both signs using each cost driver and showing the differences between the two. Support Costs Allocated Cost driver Sign A Sign B Percent of material costs Number of power tool operations Difference Sign A Sign B $ 200 $ 600 Materials cost Number of power tool operations Support cost 6 5