The controller for Wolfe Machining has established the following overhead cost pools and cost drivers:

Overhead Cost PoolBudgeted Overhead CostCost DriverBudgeted Level for Cost DriverMachine set-ups$240,000Number of set-ups200 set-upsMaterial handling$90,000Units of raw material60,000 unitsQuality control inspection$48,000Number of inspections1,200 inspectionsOther overhead costs$160,000Machine hours20,000 machine hoursTotal$538,000

Order No. 715 has the following production requirements:

• Machine set-ups: 7
• Raw material: 11,200 units
• Inspections: 16
• Machine hours: 850

Required:

1. Suppose that Wolfe were to use a single, predetermined overhead rate based on number of set-ups. Compute the rate per set-up and the total overhead assigned to Order No. 715. (5 points)
2. Compute the total overhead that should be assigned to Order No. 715 by using activity-based costing. (7 points)