Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Cost Driver Orders Setups Machine hours Parts Inspections Est. Overhead $ 120,000 297,000 1,500,000 1,200,000 300,000 Cost Driver Activity 500 orders 450 setups 125,000 MH 1,000,000 parts 500 inspections Sanborn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is $6,834 $1.20 $0.12 $240