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 During March 2001, Southern received an order for 1,500 machine tools and produced them. The order required the following: Machine setups 7 Machine-hours 3,250 Materials 4,250 lb. Direct labor-hours 2,750 hours Required Calculate the predetermined factory overhead rates for cost drivers. 1