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2. Texas Co. established the following overhead cost pools and cost drivers:

Budgeted    Estimated      Overhead Cost Pool Overhead  Cost Driver Cost Driver Level     Quality controls $780,000  # of inspections 26,000  inspections   Machine setups $720,000  # of setups 12,000  setups   Other overhead costs $900,000  # of machine hrs  50,000  machine hrs   Total overhead costs $2,400,000                     A recent order for sailboats used:           Quality inspections 750  inspections       Machine setups 500  setups       Machine hours (MHs) 2,400  machine hours

a.  What is the overhead rate per machine hour if the number of machine hours (MHs) is used as a single cost driver under traditional costing system?

b.  Utilizing traditional costing, how much overhead is assigned to the order  based on machine hours as a single cost driver?

c.  Utilizing ABC, how much total overhead is assigned to the order?