Problem One PLANT-WIDE RATE AND ACTIVITY-BASED COSTING The comptroller for Douglas Inc. has established the following activity cost pools and cost drivers. Budgeted Overhead Activity Cost Pool Cost Cost Driver Budgeted Level for Cost Driver Machine setups Material handling Waste control Quality control Other overhead costs $200,000 100,000 50,000 75,000 200,000 Number of setups 160 Weight of material 50,000 kilograms Weight of chemicals 10,000 kilograms Number of inspections 300 Machine hours 20.000 Each order must be a minimum of 1,000 boxes of film chemicals. The production requirements for each minimum order are as follows: Machine setups Material handling Waste Control Quality Control Other Overhead Costs 5 setups 1,500 kilograms 200 kilograms 5 inspections 500 machine hours Required: 1 Calculate the overhead that should be assigned to each minimum order of film chemicals using the above data. 2 Calculate the overhead that should be assigned to each minimum order of film chemicals if Douglas decides to use a single predetermined overhead rate based on machine hours