- COD underapplied Question 12 2 pts Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Cost Driver Activity 500 orders Activity Cost Pool Cost Driver Ordering and Receiving Orders Machine Setup Setups Machining Machine hours Assembly Parts Inspection Inspections Est. Overhead $ 120,000 297,000 1,500,000 1,200,000 300,000 450 setups 125,000 MH 1,000,000 parts 500 inspections If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is $34.17 $9.60 $15.00 $12.00