Problem 3 - Activity Based Costing (20 points) The controller for Ocean Sallboats Inc., a company which uses an automated process to make salboats, established the following overhead cost pools and cost drivers: Budgeted Estimated Overhead Cost Pool Overhead Cost Driver Cost Driver Lavel Machine setups $250,500 # of setups 500 setups Quality control 419,500 # of inspections 2,500 inspections Other overhead cost 180,000 # of machine hrs 20,000 machine hrs A recent order for sailboats used: I Machine setups 50 setups Quality inspections 305 inspections Machine hours 2,024 machine hours Required: 1. What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? 2. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver? 3. Utilizing ABC, how much total overhead is assigned to the order