The controller for Wolfe Machining has established the following overhead cost pools and cost drivers:

Wolfe Machining data

Overhead Cost Pool	Budgeted Overhead Cost	Cost Driver	Budgeted Level for Cost Driver
Machine set-ups	$240,000	Number of set-ups	200 set-ups
Material handling	$90,000	Units of raw material	60,000 units
Quality control inspection	$48,000	Number of inspections	1,200 inspections
Other overhead costs	$160,000	Machine hours	20,000 machine hours
Total	$538,000

Order No. 715 has the following production requirements:

• Machine set-ups: 7
• Raw material: 11,200 units
• Inspections: 16
• Machine hours: 850

Required:

1. Suppose that Wolfe were to use a single, predetermined overhead rate based on number of set-ups. Compute the rate per set-up and the total overhead assigned to Order No. 715. (5 points)
2. Compute the total overhead that should be assigned to Order No. 715 by using activity-based costing. (7 points)