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The controller for Wolfe Machining has established the following overhead cost pools and cost drivers: B cl t d O h cl B cl t

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The controller for Wolfe Machining has established the following overhead cost pools and cost drivers: B cl t d O h cl B cl t d L If C t Overhead Cost Pool u ge e ver ea Cost Driver u ge e eve or 05 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 Number of , , _ _ $48,000 , _ 1,200 Inspections Inspection Inspections Other overhead costs $160,000 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: A. 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) B. Compute the total overhead that should be assigned to Order No. 715 by using activity-based costing. (7 points)

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