William Company is contemplating the establishment of an activil applies all overhead costs based on direct labor costs. The company has est unemplating the establishment of an activity-based costing (ABC) system. It currently activities for May: direct labor costs. The company has estimated the following costs and Table 1: Cost Activity Machine Setups $33,600 400 setups Utilities 60,000 200,000 usage hours Materials Handling 84,000 12,500 crates Direct labor 35,520 S20 per labor hour Direct material 60,000 $1 per pound Direct labor cost is $20 per hour. The following information pertains to the actual production of buckets and pails during May: Table 2: Buckets Units produced 60,000 Direct material cost incurred $30,000 Direct labor cost incurred ($20 per hour) $24,000 Setups implemented 120 Crates handled 6,800 Utility hours used 80,000 Pails 40,000 $31,200 $12,000 290 5,200 125,000 1. Which items are cost pools? 2. Which are cost drivers? 3. Which are cost objectives? How much is the product cost per pail if William Company uses one cost pool to allocate all overhead costs to the cost objectives? c. How much is the product cost per pail if William Company uses ABC