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10 15 A company has traditionally allocated its overhead based on machine hours but collected this information change to activity-based costing: Estimated Activity Activity Center

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10 15 A company has traditionally allocated its overhead based on machine hours but collected this information change to activity-based costing: Estimated Activity Activity Center Product 1 Product 2 Estimated cost Machine setups $50,000 Assembly parts 1,000 1,500 75,000 Packaging units 500 300 85,000 Machine hrs per unit 1 Production volume 2,000 2,000 How much overhead would be assigned to each unit under the traditional allocation method? How much overhead would be assigned to each unit under activity-based costing? 1.5

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