The controller for the Astro Inc. established the following overhead cost pools and cost drivers:

	Budgeted		Estimated Cost
Overhead Cost Pool	Overhead	Cost Driver	Driver Level
Quality controls	$800,000	# of inspections	20,000	inspections
Machine setups	$900,000	# of setups	18,000	setups
Other overhead costs	$800,000	# of machine hrs	40,000	machine hrs
Total overhead costs	$2,500,000
A recent order for sailboats used:
Quality inspections	1,300	inspections
Machine setups	500	setups
Machine hours (MHs)	2,500	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?