Question Julio Manufacturing Company uses activity-based costing. The factory overhead budget for the coming period is $500,000, consisting of the following: Cost Pool Direct labor support Machine support Machine setups Budgeted Amount $150,000 200,000 100,000 50,000 Design changes Total $500,000 The potential allocation bases and their estimated amounts were as follows: Cost Drivers Number of design changes Number of setups Machine hours Budgeted Amount 50 200 10,000 20,000 Direct labor hours 1. Determine the overhead rate for each cost pool, using the most appropriate allocation base for each pool. 2. Job 2525 required $25,000 for direct materials, $10,000 for direct labor, 500 direct labor hours, 1,000 machine hours, five setups, and three design changes. Determine the cost of Job 2525.