1. Alden Company currently uses traditional costing procedures, applying $200,000 of overhead to products A and B on the basis of direct labor hours. The firm is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow. Pool No. 1 Pool No. 2 Pool No. 3 Product (Driver: DLH) (Driver: SU) (Driver: PC) A 400 25 1,900 B 600 75 1,100 Pool Cost $40,000 $70,000 $90,000 ) The overhead cost allocated to product A by using traditional costing procedures would be: b) The overhead cost allocated to product B by using traditional costing procedures would be: c) The overhead cost allocated to product A by using activity-based costing procedures would be: d) The overhead cost allocated to product B by using activity-based costing procedures would be: 2. The controller for Turner Supply Company has established the following overhead cost pools and cost drivers: Budgeted Overhead Cost Pool Overhead Cost Cost Driver Machine setups $100,000 Number of setups Material handling 50,000 Units of raw material Quality control inspection 37,500 Number of inspections Other overhead costs 100,000 Machine hours Total $287,500 Budgeted Level Overhead Cost Pool for Cost Driver Overhead Rate Machine setups 100 setups $1,000 per setup Material handling 50,000 units $1 per unit Quality control 1,000 inspections $37.50 per inspection Other overhead 20,000 machine hours $5 per machine hour Order no. 542 has the following production requirements: Machine setups 4 setups Raw material 10,000 units Inspections 10 inspections Machine hours 500 machine hours Required: a) Compute the total overhead that should be assigned to order no. 542 by using activity-based costing. 0 ) Suppose that Turner were to use a single, predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to order no. 542