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

Order no. 715 has the following production requirements:

Machine setups: 5 Units of Raw material: 1,000 units Inspections: 4 Machine hours: 500

Assume also that direct material for order no 715 is $20,000 and direct labor is $12,000.

Required:

A. Calculate the 4 different pool rates using the table information above.

B. Compute the total overhead that should be assigned to order no. 715 by using activity-based costing.

C. Compute the total cost assigned to the order.

D. Which of the two methods (traditional or ABC) is more accurate? Why?