Question 1 of 1 5/10 E View Policies Show Attempt History Current Attempt in Progress Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below area sample of possible cost pools for Waterways. Assembling Payroll Billing Plant supervision Digging trenches Product design Janitorial Purchasing materials Selling Machine maintenance Machine setups Testing Molding Welding Packaging 5/10 Packaging * Your answer is incorrect Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places es 12.25) WATERWAYS CORPORATION Expected Use of Cost Activity Cost Estimated Drivers per Actual Use of Pools Cost Drivers Overhead Activity Drivers Irrigation installation Labor cost $1,691,690 11.830 11.809 Machining (all machine use Machine hours 1.620,650 32,413.000 32414,000 Customer orders Number of orders 32.280 2.690 2663 Shipping none (direct N/A NA traced directly Design Cost per design 792 8 Selling Number of sales calls 387.600 22.800 23,000 7 Question 1 of 1 5/10 Design Cost per design 792 8 2 Selling Number of sales calls 387,600 22.800 23.000 WATERWAYS CORPORATION Activity Cost Pools Activity Based Overhead Rates Actual Cost Assigned Trrigation installation Machining (all machine use) Customer orders TITAN Design Selling