1. The controller for SSS Company has established the following manufacturing overhead cost pools and cost drivers: Overhead Cost Pool Budgeted Overhead Cost Cost Driver Machine setups $400,000 Number of setups Material handling 220,000 Units of raw material Quality control inspection 80,000 Number of inspections Other overhead costs 500,000 Machine hours Overhead Cost Pool Budgeted Level for Cost Driver Machine setups 200 setups Material handling 100,000 units Quality control 2,000 inspections Other overhead 100,000 machine hours Order no. 222 has the following production requirements: Machine setups 3 setups Raw material 600 units Inspections 15 inspections Machine hours 2,000 machine hours Required: a) Compute the total manufacturing overhead that should be assigned to order no. 222 by using activity-based costing (ABC). b) Suppose that SSS were to use a single, predetermined overhead rate (POHR) based on machine hours. Compute the POHR and the total manufacturing overhead assigned to order #222.

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