ABC Inc. produces a single product and manufactured 20,000 units last year. The company budgeted the following overhead costs for the year:

Indirect Factory Wages:$100,000Factory Utilities:$ 40,000Factory Depreciation:$ 60,000

Direct manufacturing costs per unit are $50. The company uses an activity-based costing system which compiles costs into 3 cost pools, machining, milling and assembly. The costs allocated to these activity cost pools break down as follows:

Usage:

Cost:MachiningMillingAssemblyIndirect Factory Wages:50%30%20%Factory Utilities:40%40%20%Factory Depreciation:10%90%0%

The following cost drivers are used for each of the following activity cost pools:

• Machining: Machine Hours
• Milling: Milling Hours
• Assembly: Direct Labour Hours

Practical capacity for each of the cost pools are shown below:

• Machining: 18,000 Machine Hours.
• Milling: 40,000 Milling Hours.
• Assembly: 12,500 Direct Labour Hours

Actual Usage was as follows:

• Machining: 40,000 Machine Hours.
• Milling: 40,000 Milling Hours.
• Assembly: 15,000 Direct Labour Hours.

The budgeted overhead rate to be charged for the Milling activity was: