Page 1: Page 3 2 3 4 Torio Inc. uses an activity-based costing system to assign overhead to jobs using predetermined rates. The company has identified three activities and reports the following budgeted information: Cost pool Manufacturing Overhead Activity level Cost driver Number of Design changes $61,600 220 design changes Setups $287,000 Number of setup 4,100 hours Inspection Number of $49,200 16,400 inspection hours Total manufacturing $397,800 overhead Actual costs and activity for two customers is as follows: 5 Page 4: 7 B 9 Page 5: 10 11 Customer 1 Customer 2 Direct materials $1.700 $460 Icost Direct labour cost $160 $94 Number of design 11 1 changes Number of setup 22 11 hours Number of 33 42 inspection hours How much overhead would be assigned to Customer 2? Page 6 $1.450