24.

Colorado has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. The following information is available regarding activity cost pools, cost drivers, total estimated overhead costs, and estimated use of activities per product:

Activity Cost Pool		Cost Driver		Est. Overhead		Cost Driver Activity
Ordering and Receiving		Orders		$ 85000		500	orders
Machine Setup		Setups		266500		450	setups
Machining		Machine hours		1577500		125000	MH
Assembly		Parts		1210000		1000000	parts
Inspection		Inspections		355000		500	inspections

If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is

Group of answer choices

$170 per order

$0.85 per direct labor hour

$0.09 per part

$6988 per order