XYZ Corp uses an ABC costing system. It has projected the following indirect costs:

Yearly Budgeted Costs
Building Depreciation	$200,000.00
Machine Maintenance	$95,000.00
Building Insurance	$12,000.00
Machine Depreciation Cost	$345,000.00
Machine Electrical Cost	$130,000.00
Building Utility Costs	$48,000.00
Building Janitorial Costs	$36,000.00
Total Costs
Yearly Budgeted Drivers
Machine Hours	500,000.00
Building Square Footage	20,000.00
Direct Labor Hours	350,000.00
Units Produced	2,000,000.00

1. You have been asked to create a cost pool for Building Costs and a cost pool for Machine Costs. Based on the information above what is the total budgeted costs for the Building Cost Pool?

2. What is the total budgeted cost for the Machine Cost Pool?

3. The best cost driver to apply the Building Cost Pool would be: Building Square Feet/Direct labor Hours/Machine Hours/Units Produced

4. Using the best cost driver for the Machine Cost Pool, calculate the predetermined overhead rate.

5. Using the best cost driver for the Building Cost Pool, calculate the predetermined overhead rate for the month.

6. Department A has the following results for January:

Department A - Actual Results
Machine Hours	42,000.00
Building Square Footage	3,500.00
Direct Labor Hours	30,000.00
Units Produced	165,000.00

How much machine cost would you allocate to Department A? (Just calculate the cost applied for the Machine Cost Pool.