Wilson Company manufactures microwave ovens. Presently the company assigns overhead to each product using direct labour hours to calculate a plantwide rate.

The following information is available for the upcoming year:

Estimated factory overhead	$1,300,000
Estimated direct labour hours	20,000

The company is considering implementing an activity-based costing system and has identified three activities.

Resource drivers are used to assign costs to each activity.

The following information about each activity is available:

Activity	Estimated Costs	Cost Driver	Total Estimated Driver
Material handling	$260,000	Parts	65,000
Assembly	$600,000	Machine hours	60,000
Finishing	$440,000	Direct labour hours	20,000

One of the models that the company produces uses the following resources:

	Premium
Parts	24
Machine hours	2
Direct labour hours	3

Required:

Use the above information to answer the following questions about activity based costing.

The plantwide predetermined overhead rate, using direct labour hours as the cost driver, is $________________ per direct labour hour.

Assume that the actual direct labour hours were 24,000 direct labour hours. If the company uses the plantwide rate, then the total applied overhead would be $__________________.

Using the plantwide overhead rate, the total overhead applied to one unit of Premium is $______________.

If the company decided to use activity-based costing, then the overhead rate for Material Handling would be $___________ per part.

If the company decided to use activity-based costing, then the overhead rate for Assembly would be $___________ per machine hour.

If the company decided to use activity-based costing, then the overhead rate for Finishing would be $___________ per direct labour hour.

Using the activity based costing system, the total overhead applied for all activities to one unit of Premium is $______________.