Question
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
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 Activity Driver Quantity Wafer A Wafer B 7. Inserting dies Number of dies 2,000,000 0.70 0.30 8. Purchasing materials Number of purchase orders 2,500 0.20 0.80 1. Developing test programs Engineering hours 10,000 0.25 0.75 3. Testing products Test hours 20,000 0.60 0.40 ABC assignments $1,500,000 $1,500,000 Total overhead cost $3,000,000 Required:What if the two activities were 1 and 3? Repeat Requirements 1 and 2. Form reduced system cost pools for activities 1 and 3. Round any division to 9 decimal places in your computations. 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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