Simplifying the ABC System: Equally Accurate Reduced ABC Systems Selected activities and other information are provided for Patterson Company for its most recent year of operations. Expected Consumption Ratios Driver Quantity Wafer A Wafer B Activity 7. Inserting dies Number of dies 1,800,000 0.7 0.3 Number of purchase 8. Purchasing materials 2,700 0.2 0.8 orders 0.25 0.75 Engineering hours Test hours 10,500 15,000 0.6 0.4 1. Developing test programs 3. Testing products ABC assignments Total overhead cost $125,000 $125,000 $250,000 Required: 1. Form reduced system cost pools for activities 7 and 8. Do not round interim calculations. Round your final answers to the nearest dollar. Inserting dies cost pool 750,000 X Purchasing cost pool -66,667 X 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Do not round interim calculations. Round your final answers to the nearest dollar. Wafer A 511,667 X Wafer B 171,667 X 3. What if the two activities were 1 and 3? Repeat Requirements 1 and 2. Form reduced system cost pools for activities 1 and 3. 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Do not round interim calculations. Round your final answers to the nearest dollar. Wafer A $ 511,667 Wafer B $ 171,667 X 3. What if the two activities were 1 and 3? Repeat Requirements 1 and 2. Form reduced system cost pools for activities 1 and 3. Do not round interim calculations. Round your final answers to the nearest dollar. Developing test programs cost pool $ 166,667 X Testing products cost pool $ 416,667 X Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Wafer A 208,333 X Wafer B 41,667 X