The controller for Vitrina Inc. has established the following activity cost pools and cost drivers.

BudgetedBudgeted

OverheadLevel for

Activity Cost Pool CostCost DriverCost Driver

Machine setups$200,000Number of setups160

Material handling100,000Weight of material50,000 kilograms

Waste control50,000Weight of chemicals10,000 kilograms

Quality control75,000Number of inspections 300

Other overhead costs200,000Machine hours20,000

Required:

1 Calculate the overhead that should be assigned to each minimum order of film chemicals using the above data.

2 Calculate the overhead that should be assigned to each minimum order of film chemicals if Vitrina decides to use a single predetermined overhead rate based on machine hours.