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 2,000,000 0.70 0.30 Number of purchase 8. Purchasing materials 2,500 orders 1. Developing test programs Engineering hours 10,000 0.75 3. Testing products Test hours 20,000 0.60 0.40 ABC assignments $1,500,000 $1,500,000 Total overhead cost $3,000,000 0.20 0.80 0.25 1. Form reduced system cost pools for activities 7 and 8. Round any division to 9 decimal places in your computations. Round your final answers to the nearest dollar. Inserting dies cost pool 1,800,000 Purchasing cost pool 1,200,000 2. Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Round any division to 9 decimal places in your computations. Round your final answers to the nearest dollar. Wafer A 1,500,000 Wafer B 1,500,000 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. Round any division to 9 decimal places in your computations. Round your final answers to the nearest dollar. Developing test programs cost pool Testing products cost pool Assign the costs of the reduced system cost pools to Wafer A and Wafer B. Wafer A 1,500,000 Wafer B 1,500,000