Simplifying the ABC System: Equally Accurate Reduced ABC Systems

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

Expected Consumption

Ratios

$\backslash$table$[[$Activity$,$Driver,Quantity,Wafer A$,$Wafer B$],[7.$ Inserting dies,Number of dies,$1,900,000,0\mathrm{.}7,0\mathrm{.}3],[,$Number of purchase,,,$0\mathrm{.}8],[8.$ Purchasing materials,orders,$1,900,0\mathrm{.}2,0\mathrm{.}75],[,$Engineering hours,$9,000,0\mathrm{.}25,0\mathrm{.}4],[1.$ Developing test programs,Test hours,$19,000,0\mathrm{.}6,$$$165,000$