Assign P-Sl ProDriver Inc. {PHI} recently started operations to obtain a share of the growing market for overhead costs using ABC. golf equipment. PD] manufactures two models of specialty drivers: the Thunderbolt model and the Earthquake model. Two professional engineers and a professional golfer, none of whom had any accounting background. formed the company as apartnership. The business has been very successful, and to cope with the increased level of activity, the partners have hired a CGA as their controller. l[Dine of the rst improvements that the controller wants to make is to update the costing system by changing from a single overhead application rate using direct labour hours to activity-based costing. The controller has identied the following three activities as cost drivers, along with the related cost pools: Number of Material Number of Product Number of l[llrders Model Requisitions Inspections Shipped Thunderbolt 46 23 157 Earthquake 62 31 129 Costs per $54.00!!) $83M $113,000 pool Instructions {a} Using activity-based costing, prepare a schedule that shows the allocation of the costs of each cost pool to each model. Show your calculations. (b) Identify three conditions that should be present in PD] in order for the implementation of activity-based costing to be successful