QUESTION 7

1. Sanborn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.
5. Activity Cost PoolCost DriverEst. OverheadCost Driver Activity
7. Ordering andReceivingOrders$120,000500 orders
9. MachineSetupSetups297,000450 setups
11. MachiningMachinehours1,500,000125,000 MH
13. AssemblyParts1,200,0001,000,000 parts
15. InspectionInspections300,000500 inspections
17. If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is