The following estimated overhead cost information is available for NOP Corporation:

Activity Allocation Base OH Cost

Purchasing # of Purchase Orders $600,000

Receiving # of Shipments $50,000

Machine Set-Ups # of Setups $240,000

Quality Control # of Inspections $160,000

During the year, 60,000 purchase orders were issued; 25,000 shipments were received; 2000 setups; and 10,000 inspections. Direct labor hours were 20,000.

A. What is the cost allocation for each of the four activities using ABC costing?

B. What is the Predetermined overhead rate using the traditional method (direct labor hours) -- HINT: Total estimated overhead cost is the total for all of the activities.