ASsIgN overead costs using traditional costing and ABC homes. All are of white oak. Its budgeted manufacturing overhead costs for the year 2014 compare results. (LO 1, 4), AN 3B LUxury Furniture designs and bullds ractory-made, premium, Wood armoires tor are as follows. Overhead Cost Pools Amount Purchasing 45,000 50,000 130,000 85,000 60,000 80,000 100,000 $550,000 materials Production (cutting, milling, finishing) Setting up machines Inventory control (raw materials and finished goods) Utilities Total budgeted overhead costs For the last fou r years, Luxury Furniture has been charging overhead to products on the basis of materials cost. For the year 2014, materials cost of $500,000 were budgeted. Jim Brigham, owner-manager of Luxury Furniture, recently directed his accountant, Bob Borke, to implement the activity-based costing system that he has repeatedly pro- posed. At Jim Brigham's request, Bob and the production foreman identify the following cost drivers and their usage for the previously budgeted overhead cost pools. Expected Use of Overhead Cost Pools Activity Cost DriversCost Drivers Number of orders Number of moves Direct labor hours Number of setups Number of inspections 500 Handling materials Production (cutting, milling, finishing) Setting up machines 5,000 65,000 1,000 4,000 Inventory control (raw materials and finished goods) Utilities Number of components Square feet occupied 40,000 50,000