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

Activity Driver Quantity Wafer A Wafer B

$7.$ Inserting dies Number of dies $2,200,0000\mathrm{.}70\mathrm{.}3$

$8.$ Purchasing materials Number of purchase

orders $3,0000\mathrm{.}20\mathrm{.}8$

$1.$ Developing test programs Engineering hours $10,5000\mathrm{.}250\mathrm{.}75$

$3.$ Testing products Test hours $18,5000\mathrm{.}60\mathrm{.}4$

ABC assignments $$145,000$ $$145,000$

Total overhead cost $$290,000$

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