Tan's Comeback Crew has the following overhead costs and cost drivers Direct labor hours are estimated at 100.000 tor the year Activity Cost Pool Cost Driver E st Overhead Cost Driver Activity Ordering and Receiving Orders 500 orders $ 120.000 Machine Setup 450 setups 297.000 Setups 125.000 MH 1.500.000 Machine hours Machining 1.000.000 parts 1.200.000 Parts Assembly 300,000 500 inspections Inspections Inspection If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is 53417 $12.00 $15.00 59.60