ONLY need question 3 answered - please see attached photo

Cornerstone Exercise 4.8 Simplifying the ABC System: Approximately Relevant ABC Systems

Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided:

3.What ifactivities 1, 2, 5, and 8 each had a cost of $650,000 and the remaining activities had a cost of $50,000? Calculate the cost assigned to Wafer A by a fully specified ABC system and then by an approximately relevant ABC approach

\fCost Allocation based on Historical Data. Activity Consumption Ration Cost 1 0.25 $ 2 0.1 $ 3 0.6 $ 4 0.55 $ 5 0.15 $ 6 0.45 $ 7 0.7 $ 8 0.2 $ 9 0.35 $ 10 0.65 $ 11 0.5 $ 12 0.3 $ $ Cost Assigned to wafer A $ 650,000.00 650,000.00 12,500.00 2,812.50 650,000.00 6,250.00 14,583.33 650,000.00 1,250.00 1,562.50 10,416.67 625.00 2,650,000 Wafer A $ 162,500.00 $ 65,000.00 $ 7,500.00 $ 1,546.88 $ 97,500.00 $ 2,812.50 $ 10,208.33 $ 130,000.00 $ 437.50 $ 1,015.63 $ 5,208.33 $ 187.50 $ 483,917 483,917 Approximation Total Cost $ 2,650,000 Cost rate 16% Assuming we estimate the cost allocation at 16% of the total cost. Cost Allocated $ 424,000 Activity Cost 3 600000 4 135000 6 300000 7 700000 9 60000 10 75000 11 500000 12 30000 2400000 Allocation 12500 2812.5 6250 14583.33 1250 1562.5 10416.67 625 50000