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.

$\backslash$table$[[$Activity$,$Driver,Quantity,$\backslash$table$[[$Expected Consumption$],[$Ratios$]]],[$Wafer A$,$Wafer B$],[7.$ Inserting dies,Number of dies,$1,500,000,0\mathrm{.}7,0\mathrm{.}3],[8.$ Purchasing materials,$\backslash$table$[[$Number of purchase$],[$orders$]],2,600,0\mathrm{.}2,0\mathrm{.}8],[1.$ Developing test programs,Engineering hours,$10,500,0\mathrm{.}25,0\mathrm{.}75],[3.$ Testing products,Test hours,$15,000,0\mathrm{.}6,0\mathrm{.}4],[ABC$ assignments,,,$$125,000,$$$125,000],[$Total overhead cost,,,,$$250,000]]$

Required:

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

$ $$

$$

Purchasing cost pool

$$,$

$2.$ 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 th

Wafer A $x$

Wafer B $$

$3.$ What if the two activities were $1$ and $3?$ Repeat Requirements $1$ and $2.$