The controller for Olsten Machining Co. established the following overhead cost pools and cost drivers:

Overhead Cost Pool	Budgeted Overhead	Cost Driver	Estimated Cost Driver Level
Machine setups	$144,000	# of setups	120 setups
Material handling	268,800	# of pounds	84,000 pounds
Quality control	138,600	# of inspections	990 inspections
Other overhead cost	168,000	# of machine hrs	12,000 machine hrs

An order of steel tubing used the following amounts of the cost drivers:

# of setups 15

# of pounds 9,500

# of inspections 120

# of machine hours 1,400

Required:

• Using volume-based costing, how much overhead is assigned to the order based on machine hours as a single cost driver?

Overhead assigned to the order using MH:

• Using ABC costing, how much total overhead is assigned to the order?

Overhead assigned to the order using ABC:

Show computations here: