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 Grinding Polishing Product modification Providing power System calibration Indirect Labor Indirect Materials Other Overhead $360,000 550,000 460,000 $150,000 $225,000 Additional information on the drivers for its production activities follows. Grinding Polishing Product modification Providing power System calibration 14,000 machine hours 14,000 machine hours 1,900 engineering hours 16,000 direct labor hours 1,050 batches Required: 1. Compute the activity overhead rates using ABC. Form cost pools as appropriate. Activity Overhead Cost Activity Drivers Machine hours Engineering hrs. Direct labor hrs. batches Activity Rate per machine hour per engineering hour per direct labor hour per batch