Required information [The following information applies to the questions displayed below.] Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records Indirect Materials Indirect Labor other Overhead Production Activity Grinding Polishing Product modificatiorn Providing power System calibration $320,000 $210,000 600,000 $210,000 580,000 Additional information on the drivers for its production activities follows Grinding and Polishing Product modification Providing power System calibration 14,000 machine hours 2,000 engineering hours 20,000 direct labor hours 500 batches Required: 1. Compute the activity overhead rates using ABC. Form cost pools as appropriate. Activity Overhead Cost Activity Drivers Activity Rate Machine hours Engineering hrs Direct labor hrs. batches per machine hour per engineering hour per direct labor hour per batch