1. According to the case, if using ABC, Wilkerson should pool overheads into five activities: machine-related expenses, setup labor cost, receiving and production control cost, engineering cost, and packaging and shipping cost. The cost pool/cost driver information for an Activity Based Costing (ABC) system for Wilkerson has already provided by table 1. Based on the information on table 1 and four exhibit in case, we can figure out that the total cost per unit of valves, pumps and flow controllers are $46.17, $58.20, and $115.38, respectively, by using the Activity Based Costing system. Computation Process shows on table 2. After computation, the gross margin % for each product using ABC shows on table 3. The actual gross margin % for valves, pumps and flow controllers are 46.30%, 33.10% and -9.90%, respectively.…