Sonoma Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tape vacuum). Production is 700,000 units of Budget and 200,000 units of Deluxe. Information is presented below:
				Cost Drivers by Product
Activity Cost Pool		Cost Driver	Estimated Overhead	Budget	Deluxe
Ordering and Receiving		Orders	$120,000	600	400
Machine Setup		Setups	$297,000	500	400
Machining		Machine hours	$1,000,000	150,000	100,000
Assembly		Parts	$1,400,000	1,200,000	800,000
Inspection		Inspections	$300,000	550	450
	Total		$3,117,000
Round answers to the nearest cent.

Required:

1. Assume simple costing system used machine hours only as the single cost allocation base.

   1. Compute a single overhead rate

   2. Compute the amount of overheads allocated to Budget and Deluxe.

   3. Compute the amount of overhead per unit allocated to Budget and Deluxe.

b.	Compute total overhead costs assigned to each product and the overhead cost per unit for each product, using activity-based costing.