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Carlton's Kitchen's three cost pools and overhead estimates are as follows: Use per Use per Estimated Overhead Product A Product B Activity Cost Pool Cost
Carlton's Kitchen's three cost pools and overhead estimates are as follows: Use per Use per Estimated Overhead Product A Product B Activity Cost Pool Cost Driver Machine Setups Setups $84,000 4,000 2,000 Assembly Number of Parts 71,000 26,000 45,000 Machine Maintenance Machine Hours 150,000 12,500 37,500 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product A Product B Total Overhead (ABC) $ $ Total overhead (traditional) Difference
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