Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 150000 500 orders Machine Setup Setups 324000 450 setups Machining Machine hours 1587500 125000 MH Assembly Parts 1260000 1000000 parts Inspection Inspections 330000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is
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