: Evinrude's expected overhead costs for 2019 are $800,000. Traditionally, they ve applied OH to production using machine hours, and 80,000 machine hours are expected. A. Traditional Accounting for OH Costs 1. Calculate the predetermined OH rate for 2019. 2. Assuming 78,000 machine hours were actuauy used, how much estimated OfI was applied to production? 3. If actual OH was $777,000, did Evinrude over-apply or under-apply, and by how much? B. Evinrude uses Activity-Based Costing, and the following cost pools have been identified, along with their cost drivers: Cost Pools Use of Cost Drivers Estimated Costs Setting up Machines Assembly Inspection 2,000 setups 40,000 Labor hours 1,500 Inspections $100,000 $400,000 $300,000 Expected Use of Cost Drivers by Product Inboards Outboards Number of setups DL hours 800 16,000 500 1,200 24,000 1,000 1. Calculate the application rate for each of the three cost pools 2. Use these rates to assign costs from cach of the three cost pools to the two products. St OL ou