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Question 11 The controller for the Austin Co. established the following overhead cost pools and cost drivers: Estimated Cost Budgeted Overhead Overhead Cost Pool Cost Driver Driver Level Quality controls $600,000 # of inspections 30,000 inspections Machine setups $900,000 # of setups 15,000 Setups Other overhead costs $500,000 # of machine hrs 25,000 machine hrs Total overhead costs $2,000,000 A recent order for sailboats used: Quality inspections 1,350 inspections Machine setups 750 setups Machine hours (MHS) 2,000 machine hours Required: a) What is the overhead rate per machine hour if the number of machine hours (MHs) is used as a single cost driver under traditional costing system? b) Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver? c) Utilizing activity-based costing, how much overhead is assigned to the order