Willow Company produces lawn mowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blade, and mulching capability. At the beginning of the year, the following data were prepared for this plant:

Facility-level costs are allocated in proportion to machine hours (provides a measure of time the facility is used by each product). Receiving and materials handling use three inputs: two forklifts, gasoline to operate the forklift, and three operators. The three operators are paid a salary of $40,000 each. The operators spend 25% of their time on the receiving activity and 75% on moving goods (materials handling). Gasoline costs $3 per move. Depreciation amounts to $8,000 per forklift per year.

Required:

(Note: Round answers to two decimal places.)

1.	Calculate the cost of the materials handling activity. Label the cost assignments as driver tracing or direct tracing. Identify the resource drivers.
2.	Calculate the cost per unit for each product by using direct labor hours to assign all overhead costs.
3.	Calculate activity rates, and assign costs to each product. Calculate a unit cost for each product and compare these costs with those calculated in Requirement 2.
4.	Calculate consumption ratios for each activity.
5.	CONCEPTUAL CONNECTION: Explain how the consumption ratios calculated in Requirement 4 can be used to reduce the number of rates. Calculate the rates that would apply under this approach.

Please help. I am particularly having problems with number 3 cost assignments(prime costs is not $80 and $160 in line 2) and number 5 rates per unit in each pool. Please dont just copy a previously posted solution for this problem. Many have been posted with incorrect answers.

Basic Model Deluxe Model Expected quantity 40,000 20,000 Selling price $180 $360 Prime costs $80 $160 Machine hours 5,000 5,000 Direct labor hours 10,000 10,000 Engineering support (hours) 1,500 4,500 Receiving (orders processed) 250 500 Materials handling (number of moves) 1,200 4,800 Purchasing (number of requisitions) 100 200 Maintenance (hours used) 1,000 3,000 Paying suppliers (invoices processed) 250 500 Setting up equipment (number of setups) 16 64 Additionally, the following overhead activity costs are reported: Maintaining equipment $114,000 Engineering support 120,000 Materials handling ? Setting up equipment 96,000 Purchasing materials 60,000 Receiving goods* 40,000 Paying suppliers 30,000 Providing space 20,000 Total $ ? * Receiving activity cost includes allocated share of forklift operators' salaries. Cost Assignment Score: 76/104 1 Basic Deluxe 2 Prime costs $80.00 $160.00 3 Overhead costs: 4 Maintenance 28,500.00 85,500.00 5 Engineering 30,000.00 90,000.00 6 Materials handling 24,000.00 96,000.00 7 Setting up 19,200.00 76,800.00 8 Purchasing 20,000.00 40,000.00 9 Receiving 13,335.00 26,665.00 10 Paying suppliers 10,000.00 20,000.00 11 Providing space 10,000.00 10,000.00 12 Total manufacturing costs $155,115.00 $445,125.00 13 = Units produced 40,000.00 20,000.00 14 Unit cost (ABC) $3.88 $22.26 15 Unit cost (traditional) 5. CONCEPTUAL CONNECTION Explain how the consumption ratios calculated in Requirement 4 can be used to reduce the number of rates. (a) Complete the statement below regarding when products consume activities. When products consume activities in the same proportion the activities can be combined into one pool Using these consumption ratios as a guide, we create four pools. Points: 2/3 (b) Calculate the rates that would apply under this approach. (Round to two decimal places.) Pool 1 $ per unit Pool 2 per unit Pool 3 $ per unit Pool 4 $ per unit Points: 4/8