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Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Orders $ 175000 500 orders Ordering and Receiving Machine Setup Setups 346500 450 setups Machining

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Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Orders $ 175000 500 orders Ordering and Receiving Machine Setup Setups 346500 450 setups Machining Machine hours 1650000 125000 MH Assembly Parts 1310000 1000000 parts Inspection Inspections 355000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $350 per order. $1.75 per direct labor hour. $0.18 per part. $7673 per order

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