Essay
The controller for Alabama Cooking Oil Co. established the following overhead cost pools and cost drivers: An order of 800 barrels of cooking oil used:
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? (Round your intermediate calculation to the nearest cent and final answer to the nearest whole dollar.)
(2) Using volume-based costing, how much overhead is assigned to the order based on machine hours as a single cost driver?
(3) Using ABC costing, how much total overhead is assigned to the order?
Correct Answer:

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