21. (10 points) Tacoma manufactures two sizes of aluminum strips for commercial construction #4 and #8 size strips. Currently, Tacoma uses volume based costing to allocate overhead using machine hours as the cost driver. Budgeted overhead cost is $615,000 and budgeted machine hours are 50,000 hours. a. Calculate applied overhead for #4 product if actual machine hours are 20,000 hours for #4 and 30,000 hours for #8. Tacoma is thinking about changing to activity based costing (ABC) to allocate overhead. The controller has gathered the following information: Activity Overhead Costs Materials handling $ 45,000 Machine maintenance $300,000 Setups $270,000 Total overhead costs $615.000 Cost driver 90,000 orders 15,000 maintenance hours 45,000 setups b. Calculate applied overhead for #4 product if actual activity levels are as follows: Materials handling Machine maintenance Setups #4 72,000 orders 11,000 maintenance brs 33,000 setups #8 18,000 orders 4,000 maintenance brs 12,000 setups