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

Budgeted

Estimated

Overhead Cost Pool

Overhead

Cost Driver

Cost Driver Level

Quality controls	$650,000	# of inspections	3,250	inspections
Machine setups	$360,000	# of setups	6,000	setups
Other overhead costs	$290,000	# of machine hours	14,500	machine hours

A recent order for sailboats used:

Quality inspections	70	inspections
Machine setups	130	setups
Machine hours (MHs)	400	machine hours

Required: Please answer all the following questions, and show your works and computations to get full credits.

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

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

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