The controller for Washington Co. established the following overhead cost pools and cost drivers:

	Estimated
	Budgeted		Cost Driver
Overhead Cost Pool	Overhead	Cost Driver	Level
Quality controls	$60,000	# of inspections	2,000	inspections
Machine setups	$100,000	# of setups	20,000	setups
Other overhead costs	$90,000	# of machine hrs	2,500	machine hrs
Total overhead costs	$250,000
A recent order for sailboats used:
Quality inspections	400	inspections
Machine setups	2,500	setups
Machine hours (MHs)	300	machine hours

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 ABC, how much total overhead is assigned to the order?