P8.33 Traditional and activity-based product costing: manufacturer The accountant for Snappy Photographic Supply Ltd has estimated the following activity cost pools and activity drivers for the coming year: LO8.5 8.6 Activity Machine setups Material handling Hazardous waste control Budgeted overhead cost $300 000 150000 75000 Activity driver No. of setups Weight of raw material Weight of hazardous chemicals used No. of inspections Machine hours Budgeted level for activity driver 100 50000 kilograms 10000 kilograms Cost per unit of activity driver $3000 per setup $3 per kilogram $7.50 per kilogram Quality control Other overhead costs Total 112 500 300 000 $937 500 1000 20000 $112.50 per inspection $15 per machine hour An order for 1000 boxes of film development chemicals has the following production requirements: Machine setups Raw material Hazardous materials Inspections Machine hours 4 setups 10000 kilograms 2000 kilograms 10 inspections 500 machine hours Required: 1. Calculate the total overhead that should be assigned to the order for development chemicals. 2. What is the overhead cost per box of chemicals