Texas Co. established the following overhead cost pools and cost drivers:

	Budgeted		Estimated
Overhead Cost Pool	Overhead	Cost Driver	Cost Driver Level
Quality controls	$780,000	# of inspections	26,000	inspections
Machine setups	$720,000	# of setups	12,000	setups
Other overhead costs	$900,000	# of machine hrs	50,000	machine hrs
Total overhead costs	$2,400,000
A recent order for sailboats used:
Quality inspections	750	inspections
Machine setups	500	setups
Machine hours (MHs)	2,400	machine hours

Required:

a. What is the overhead rate per machine hour if the number of machine hours (MHs) is used as a single cost driver under traditional costing system?

b. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver?

c. Utilizing ABC, how much total overhead is assigned to the order?