Calculate overhead rates and assign overhead using ABC. E5-27 (LO 2, 3) H&Y Company uses four activity pools to apply overhead to its two products. Each activity has a cost driver used to assign the overhead costs to the product. The activities and related overhead costs are as follows: Activity Total Costs Volume of Cost Driver Material handling $ 200,000 100,000 parts Purchase orders 210,000 35 purchase orders Set-up hours 300,000 150 hours Machining 480,000 3,000 machine hours Total costs $1,190,000 The above activities are used by the two different products as follows: PC-21 WX-34 Material handling 75,000 parts 25,000 parts Purchase orders 15 Set-up hours 100 hours 50 hours Number of machine hours 2,000 machine hours 1,000 machine hours Instructions a. Calculate how much of the material handling cost will be assigned to PC-21. b. Determine the ABC allocation rate for purchase orders. c. Calculate how much of the set-up costs will be assigned to WX-34. d. Calculate how much of the total activity costs will be assigned to PC-21. 20