Calculating Activity-Based Costing Overhead Rates Assume that manufacturing overhead for Glassman Company in the previous exercise consisted of the following activities and costs: Setup (1,000 setup hours) Production scheduling (400 batches) Production engineering (60 change orders 20,000 Supervision (2,000 direct labor hours) Machine maintenance (12,000 machine hours) 84,000 Total activity costs $148,000 64,000 56,000 $472,000 The following additional data were provided for Job 845 Direct materials costs Direct labor cost (5 Milling direct labor hours 35 Finishing direct labor hours) Setup hours Production scheduling Machine hours used (25 Milling machine hours, 5 Finishing machine hours) $8,000 $2,000 5 hours 1 batch 30 hours 3 change orders