Waterways (This is a continuation of the Waterways case from Chapters 14 - 16.) WC17 Direct labor or machine hours may not be the appropriate cost driver for over-head in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple cost drivers (items that consume resources) rather than just one cost driver to apply overhead to their activities. With ABC, a company uses a cost drivers that have a direct causeleffect relationship to its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below are a sample of possible cost pools for Waterways. Instructions (a) For each of these cost pools, what would be the likely activity cost driver? (b) Using the following information, determine the overbead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. WATERWAYS CORPORATION (c) How would you classify each of the following activities by level-unit-level. batchlevel, product-level, or facility-level? (d) (1) The results of ABC can prowide a more accurate picture of cosis. Dlicus the value The results of ABC can provide a more accurate picture of cous o of Woterwayn wing this sysiem to determine osethead costs (2) How mipht using ABC affect decision maling at Waterways? Waterways (This is a continuation of the Waterways case from Chapters 14 - 16.) WC17 Direct labor or machine hours may not be the appropriate cost driver for over-head in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple cost drivers (items that consume resources) rather than just one cost driver to apply overhead to their activities. With ABC, a company uses a cost drivers that have a direct causeleffect relationship to its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below are a sample of possible cost pools for Waterways. Instructions (a) For each of these cost pools, what would be the likely activity cost driver? (b) Using the following information, determine the overbead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. WATERWAYS CORPORATION (c) How would you classify each of the following activities by level-unit-level. batchlevel, product-level, or facility-level? (d) (1) The results of ABC can prowide a more accurate picture of cosis. Dlicus the value The results of ABC can provide a more accurate picture of cous o of Woterwayn wing this sysiem to determine osethead costs (2) How mipht using ABC affect decision maling at Waterways