0/1 III Question 4 of 4 Eric Parker has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $760,500 is based on 34,000 machine hours. In an initial analysis of overhead costs, Eric Parker has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost $ 272,000 225,000 126,000 137,500 $ 760,500 Expected Activities 34,000 Machine hours 1,500 Setups 1,800 batches 550,000 pounds Eric Parker is taking the next step in his exploration of activity-based costing and wants to examine the overhead costs that would be allocated to two of the department's four products. He has gathered the following budget Information about each product Component Component Driver Usage 3F5 T76 Machine hours 800 12.000 Setups 40 17 Batches 15 Pounds of raw materials 10,000 10,000 10 (al Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead Question 4 of 4 0/15 Eric Parker is taking the next step in his exploration of activity-based costing and wants to examine the overhead costs that would be allocated to two of the department's four products. He has gathered the following budget information about each product. Component Component Driver Usage 3F5 T76 Machine hours 800 12,000 Setups 40 17 Batches 10 Pounds of raw materials 10,000 10,000 15 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base. (Round overhead rotes to 2 decimal ploces, es 5.27 and round final answers to decimal places, eg. 5,275.) Component 3F5 Component 176 Total Overhead allocated (b) Calculate the total overhead allocated to each component under activity-based costing (Round overhead rotes to 2 decimal places, e$. 5.27 and round final answers to decimal places, es 5,275.) Component 3F5 Component 776 $ Total Overhead allocated