Comparing ABC and Plantwide overhead Cost Assignments Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: $432,000 Setting up equipment $1,440,000 Other overhead Setting up equipment is based on setup hours, and other overhead is based on oven hours. Wellington produces two products, Fudge and Cookies. Information on each product is as follows: Fudge Cookies Units produced 8,000 445,000 Setup hours 6,400 1,600 Oven hours 1,600 8,000 Required: 1. Calculate the activity rate for (a) setting up equipment and (b) other overhead. per setup hour a. Setting up equipment b. Other overhead per oven hour 2. How much total overhead is assigned to Fudge using ABC