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. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 330,000 Polishing $ 160,000 Product modification 450,000 Providing power $ 220,000 System calibration 540,000 Additional information on the drivers for its production activities follows. Grinding and Polishing 17,000 machine hours Product modification 1,700 engineering hours Providing power 19,000 direct labor hours System calibration 300 batches Required: 1. Compute the activity overhead rates using ABC. Form cost pools as appropriate.