Wisc Co. produces two types of ship: submarines and aircraft carriers. Determine the overhead rates using the activity-based costing approach with three cost pools: machining, machine setup, and testing. Machine hours Submarines 2,500 Aircraft Carriers Total 2,000 $4,500 Setup hours 400 300 $700 Testing hours 75 50 $125 $468,000 Total estimated overhead costs $249,600 Overhead cost allocated to the machining activity cost pool $176,800 Overhead cost allocated to the machine set up activity cost pool $41,600 Overhead cost allocated to the testing activity cost pool Activity-Based Overhead Rate Machining: Machine Setup: Testing