Problem 17.6A (Statle) Applylng Overhead Costs Using ABC (LO17-6, LO17-7) Norton Chemical Company produces two products: Amlthol 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 portlon of the company's total manufacturing overhead. Purchasing Department costs are assigned to two actlvity 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 actlvity. Of the department's five full-time employees, one is responsible for ordering raw materlals, and four are responsible for inspecting incoming shipments of materlals. 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 actlvity levels. In a normal year, the company conducts 2,400 inspectlons to sample the quality of raw materlals. The large number of Amithol-related Inspectlons is due to quality problems experlenced in the past. The quality of Bitrite materlals has been consistently good. Required: a. Assign the Purchasing Department's costs to the Indlvidual cost pools. b. Allocate the order cost pool to the Indlvidual product lines. c. Allocate the inspection cost pool to the Indlidual product lines. Complete this question by entering your answers in the tabs below. Assign the Purchasing Department's costs to the individual cost pools