The controller for Crombie Inc. has established the following activity cost pools and cost drivers.

Each order must be a minimum of 1,000 boxes of film chemicals.
The production requirements for each minimum order are as follows:
Machine setups............................5 setups
Materials handling........................1,500 kilograms
Waste control..............................200 kilograms
Quality control............................5 inspections
Other overhead costs.....................500 machine hours
Required:
1. Calculate the overhead that should be assigned to each minimum order of film chemicals using the above data.
2. Calculate the overhead that should be assigned to each minimum order of film chemicals if Crombie decides to use a single predetermined overhead rate based on machine hours.

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Budgeted Level for Cost Driver 160 50,000 kilograms 10,000 kilograms 300 20,000 Budgeted Cost Driver Activity Cost Pool Machine setups Materials handling Waste control Quality control Other overhead costs Overhead Cost Number of setups $200,000 Weight of materials Weight of chemicals Number of inspections Machine hours 50,000 200,000