206 207 VI MaxPhones makes two phones, basic and deluxe. 208 They decide to break their overhead costs into 5 cost pools: 209 Cost Estimated Activity used to Allocate 210 Ordering and Receiving $ 200,000 Number of Orders 211 Machine Setup $ 120,000 Number of machine setups 212 Machining $ 1,500,000 Machine Hours 213 Assembly $ 1,200,000 Number of Parts 214 Inspection $ 300,000 Number of Inspections 215 Total $ 3,320,000 216 217 a) Calculate the overhead rates for each Activity 218 Overhead rate 40,000 24,000 300,000 240,000 60,000 664,000 220 221 222 223 224 225 226 Number of Orders Number of machine setups Machine Hours Number of Parts Number of Inspections Total Company 1,000 400 100,000 800,000 300 Deluxe Phone 400 200 25,000 600 000 120 Basic Phone 600 200 75,000 200,000 180 228 230