Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Waterways. (Round answers to 2 decimal places, e.g. 12.25.) WATERWAYS CORPORATION Expected Use of Cost Drivers per Activity Cost Pools Estimated Overhead Actual Use of Drivers Cost Drivers Labor cost Machine hours Number of orders Cost per design Number of sales calls Activity 12,960 1,670,400 33,408,000 2,553 8 21,900 12,941 33,409,000 2,520 7 22,100 $1,998,432 Irrigation installation Machining (all machine use) Customer orders Design Selling 30,636 820 350,400