3. ACTIVITY-BASED COSTING, COST DRIVERS Southern Metals Company's controller has established these overhead cost pools and cost drivers for 2001: Activity Level 40 Overhead Cost Pool Machine setups Power Materials handling Quality control Other overhead Budgeted Overhead $117,868 341,120 85,000 143,500 184,500 S871,988 Expected Cost Driver Number of setups Machine-hours Materials weight Number of units Direct labor-hours 21,320 34,000 lb. 82,000 units 14,760 hours During March 2001, Southern received an order for 1,500 machine tools and produced them. The order required the following: Machine setups 7 Machine-hours 3,250 Materials 4,250 lb. Direct labor-hours 2,750 hours Required 3. Suppose that a single predetermined factory overhead rate based on machine-hours was used to apply factory overhead. What was the pre- determined factory overhead rate? What amount of factory overhead was applied to the order