Swimmer manufactures and sells professional and amateur grade goggles to various retail outlets. To better estimate costs, the company recently adopted an activity-based costing system. Last year, the company incurred $1,000 in overhead costs. Based on an intense study of their company, the following activities, allocation bases, and percentages of overhead costs were determined:

Activity	Allocation Base	Proportion of Overhead Cost
Purchasing	Number of purchase orders	30%
Inspections	Number of inspections	45%
Sales	Number of sales orders	25%

The number of activities for professional and amateur grade goggles is as follows:

	Professional		Amateur
Number of purchase orders	3,000		7,000
Number of inspections	1,500		3,500
Number of sales orders	200		800

Required:

A.	Calculate the total overhead that should be allocated to each of the three activities.
B.	Calculate the overhead rates for each of the three activities.
C.	If a single sales order requires 40 purchase orders and 30 inspections to fill, how much overhead should be applied to the order?