(a) Assume traditional costing used machine hours as the single cost allocation base. 1. Compute a single overhead rate. 2. Compute the amount of overheads allocated to Budget and Deluxe. 3. Compute the amount of overhead per unit allocated to Budget and Deluxe.

(b) Compute total overhead costs assigned to each product and the overhead cost per unit for each product, using activity-based costing.

(c) Compare the results from traditional costing and activity-based costing. What insights can be gained from the ABC information?

Nomosa Manufacturing has five activity cost pools and two products (a budget tape vacuum and a deluxe tane vacuum). Information is nresented helow: Production is 700,000 units of Budget and 200,000 units of Deluxe. Round answers to the nearest cent