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The controller for Ocean Sailboats Incorporated, a company which uses an automated process to make...

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Accounting

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The controller for Ocean Sailboats Incorporated, a company which uses an automated process to make sailboats, established the following overhead cost pools and cost drivers: Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level Machine setups $ 250,500 Number of setups 500 setups Quality control 419,500 Number of inspections 2.500 inspections Other overhead cost 180,000 Number of machine hours 20,000 machine hours A recent order for sailboats used: Machine setups 50 setups Quality inspections 305 inspections Machine hours 2,024 machine hours Required: 1. What is the overhead rate per machine hour if the number of machine hours is used as a single cost driver under traditional costing system? 2. Utilizing traditional costing, how much overhead is assigned to the order based on machine hours as a single cost driver? 3. Utilizing ABC, how much total overhead is assigned to the order

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