3. The controller for Wofford Machining has established the following overhead cost pools and cost drivers: Overhead Cost Pool Budgeted Overhead Cost Cost Driver Budgeted Level for Cost Driver Machine setups $240,000 Number of setups 200 setups Material handling 90,000 Units of raw material Quality control inspection 48,000 Number of inspections 60,000 units 1,200 inspections Other overhead costs 160,000 Machine hours 20,000 machine hours Total $538,000 Order no. 715 has the following production requirements: Machine setups: 7 Raw material: 11,200 units Inspections: 16 Machine hours: 850 Required: A. Compute the total overhead that should be assigned to order no. 715 by using activity-based costing. B. Suppose that Wofford were to use a single, predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to order no. 715. C. Discuss the merits of an activity-based costing system in comparison with a traditional costing system.