ABC Company has been using a plant-wide rate based on machine hours as the cost driver for allocating overhead to its products. The manager believes that a better cost allocation method can be developed
The accounting department has established the following information
Activity	Budgeted Activity Cost		Cost Driver	Budgeted Capacity of cost driver
Machine Hours	$100,000		Setup Hours	200
Materials Handling	$50,000		Kg of raw materials	50,000
Quality Control	$30,000		No. of inspections	1,000
Other overhead	$20,000		Machine Hours	4,000
	$200,000
Order number 2/97 has the following production requirements:
Setup hours	10
Raw Material	2,000
Inspections	5
Machine Hours	100
If all overhead activity costs are pooled into a single plant-wide cost pool and the overhead rate is calculated using budgeted machine hours as the cost driver, what is the overhead cost allocated to order number 2/97?
If Activity based costing methods are used, what is the overhead cost allocated to order number 2/97?