Simplifying the ABC System: Approximately Relevant ABC Systems Patterson Company produces wafers for integrated circuits. Data for the most recent year are provided: Activity Driver Expected Consumption Ratios Wafer A Wafer B Inserting and sorting process activities: 1. Developing test programs $ 45,000 Engineering hours 0.25 0.75 2. Making probe cards 65,000 Development hours 0.10 0.90 3. Testing products 500,000 Test hours 0.60 0.40 4. Setting up batches 5. Engineering design 6. Handling wafer lots 7. Inserting dies 135,000 Number of batches 0.55 0.45 99,000 Number of change orders 0.20 0.80 300,000 Number of moves 0.45 0.55 900,000 Number of dies 0.70 0.30 Procurement process activities: 8. Purchasing materials 300,000 Number of purchase orders 0.20 0.80 9. Unloading materials 10. Inspecting materials 11. Moving materials 12. Paying suppliers Total activity cost 63,000 Number of receiving orders 0.35 0.65 79,000 Inspection hours 0.65 0.35 100,000 Distance moved 37,000 Number of invoices 0.55 0.45 0.30 0.70 $ 2,623,000 Unit-level (plantwide) cost assignment $1,836,100 $786,900 Activity cost assignment $1,376,300 $1,246,700 a Calculated using number of dies as the single unit-level driver. b Calculated by multiplying the consumption ratio of each product by the cost of each activity. Required: 1. Using the five most expensive activities, calculate the overhead cost assigned to each product. Assume that the costs of the other activities are assigned in proportion to the cost of the five activities. If required, round your answers to the nearest dollar. Activity Testing products Handling wafer lots Budgeted Activity Cost $