Which the cost driver. think provides the more accurate measure of the cost per day for a cost driver do you Grand Haven resident? a Fairfield Mortgage Company is a full-service residential mortgage company in the Atlanta area that in a very competitive market. The Richard Sissom. concerned about operating costs associated with processing mortgage applications and has decided to install an ABC costing m to him get a handle on costs. Although labor hours seem driver of the to be the primary cost of processing a new mortgage, the labor cost for the different involved in process activities new loans varies widely. The Accou ng Department has provided the following data for the company's five major cost pools for 2014 Activity Cost Pools Activity Drivers customer applications S 300,000 Time-assistant managers 13,000 hours conducting credit investigations 500,000 Time-credit managers. 16,500 hours 525,000 Time-Underwriting Department. 9,000 hours 250,000 Time-processing Department. 8,000 hours Preparing loan packages closing loans 600.000 Time-Legal Department hours 6,000 hours 52,500 hours $2,175,000 During 2014. the company processed and issued 5000 new mortgages, two of which are summa rized here with regard to activities used to process the mortgages: Loan 5066 Loan 5429 2.75 1.500 Application processing hours investigating hours 3.00 4.00 4.75 2.50 Underwriting hours........................... 3.000 Processing hours. 1.50 Legal processing hours. 1.50 15.00 13.00 Total hours Required for each activity cost pool. a. Determine the cost per unit of activity b. Determine the cost of processing loans 5066 and 5429. cost per hour the cost of preparing loans 5066 and 5429 assuming that an average for all used. d. Compare and discuss your answers to requirements (by and (c)