Assign overhead costs using traditional costing and ABC, compare results ? 1, 2) National Steel Company has budgeted manufacturing overhead costs of $2.5 million. It has allocated P5.48B overhead on a plant-wide basis to its two products (Standard Steel and Deluxe Steel) using machine hours, which are estimated to be 100,000 for the current year. The company has decided to experiment with activity-based costing and has created five activity cost pools and related activity cost drivers as follows Activity Centre Cost Driver Material handling Number of moves Purchase orders Number of orders Product testing Number of tests Machine set-up Number of set-ups Machining Machine hours Estimated Overhead 250,000 200,000 450,000 600,000 1.000,000 Estimated Activity 50,000 moves 4,000 orders 9,000 tests 6,000 set-ups 100,000 machine hours