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6. Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost

6. Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:

Standard Model Deluxe Model
Number of machine hours 25,800 30,800
Number of material moves 590 890
Number of setups 70 540

Total estimated overhead costs are $347,100, of which $170,200 is assigned to the material handling cost pool and $176,900 is assigned to the setup cost pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC.

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