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Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Ratios Activity Driver Quantity Wafer A

  1. Selected activities and other information are provided for Patterson Company for its most recent year of operations.

    Expected Consumption Ratios
    Activity Driver Quantity Wafer A Wafer B
    7. Inserting dies Number of dies 2,500,000 0.7 0.3
    8. Purchasing materials Number of purchase orders 2,400 0.2 0.8
    1. Developing test programs Engineering hours 12,000 0.25 0.75
    3. Testing products Test hours 20,000 0.6 0.4
    ABC assignments $150,000 $150,000
    Total overhead cost $300,000

    Required:

    1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar.

    Inserting dies cost pool $
    Purchasing cost pool $

    2. Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Do not round interim calculations. Round your final answers to the nearest dollar.

    Wafer A $
    Wafer B $

    3. What if the two activities were 1 and 3? Repeat Requirements 1 and 2.

    Form reduced system cost pools for activities 1 and 3.

    Do not round interim calculations. Round your final answers to the nearest dollar.

    Developing test programs cost pool $
    Testing products cost pool $

    Assign the costs of the reduced system cost pools to Wafer A and Wafer B.

    Wafer A $
    Wafer B $

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