3. ACTIVITY-BASED COSTING, COST DRIVERS Southern Metals Company's controller has established these overhead cost pools and cost drivers for 2001: Budgeted Expected Overhead Cost Pool Overhead Cost Driver Activity Level Machine setups $117,868 Number of setups 40 Power 341,120 Machine-hours 21,320 Materials handling 85,000 Materials weight 34,000 lb. Quality control 143,500 Number of units 82,000 units Other overhead 184,500 Direct labor-hours 14,760 hours S871,988 7 3,250 During March 2001, Southern received an order for 1,500 machine tools and produced them. The order required the following: Machine setups Machine-hours Materials 4,250 lb. Direct labor-hours 2,750 hours Required 1. Calculate the predetermined factory overhead rates for cost drivers. 2. What was the total factory overhead assigned to fill the order under the activity-based costing approach? 3. Suppose that a single predetermined factory overhead rate based on machine-hours was used to apply factory overhead. What was the pre- determined factory overhead rate? What amount of factory overhead was applied to the order