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Alphabet Company has identified 4 different activity pools for its overhead costs, allocated costs to each pool, estimated activity levels, and computed activity rates as

Alphabet Company has identified 4 different activity pools for its overhead costs, allocated costs to each pool, estimated activity levels, and computed activity rates as summarized in the following tables:

Estimated activity levels for the year
Pool 1 Number of setups 1000
Pool 2 Inspection hours 3000
Pool 3 Machine hours 15000
Pool 4 Number of parts 8000
Direct labor hours 13500
Direct materials cost 560000

Pool 1 Pool 2 Pool 3 Pool 4
Setups Inspections Grinding Receiving
Supervisory Salaries $22500 $33000 $81000 $13500
All other costs $17500 $42000 $84000 $26500
Total costs $40000 $75000 $165000 $40000
Activity rate: $40 $25 $11 $5

One of Alphabet's product lines required the following inputs during the year: 290 Direct labor hours $11220 Direct materials cost 80 Inspection hours 200 Machine hours 180 Parts 40 Setups The labor rate is $20/hour. 1. Compute the amount of overhead allocated to this product line assuming activity based costing. 2. Compute the total cost of this product line assuming activity based costing. 3. Compute the amount of overhead allocated to the product line assuming INSTEAD that overhead is allocated using a plantwide-rate based on direct labor hours. (Round the rate to the nearest dollar.)

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