Determine the overhead rates using activity based costing Activity Rate Overhead Costs Activity Cost Driver Material handling $ 200,000.00 5,000 tons of materials Machine Setup $ 400,000.00 20,000 setup hours Machine operation $ 400,000.00 10,000 machine hours Factory expenses $ 500,000.00 50,000 direct labor hours Activities Material handling Machine Setup Machine Cost Drivers Applied for the Overhead Over Rate Period 19 operation 9 Factory expenses 42 Total Applied Overhead Using ABC 1. Using ABC are you over or under Applied and by how much?