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Carlton's Kitchen's three cost pools and overhead estimates are as follows: Use per Use per Estimated Overhead Activity Cost Pool Cost Driver Product A Product

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Carlton's Kitchen's three cost pools and overhead estimates are as follows: Use per Use per Estimated Overhead Activity Cost Pool Cost Driver Product A Product B Machine Setups Setups $105,000 5,000 2,000 Assembly Number of Parts 105,000 26,000 44,000 Machine Maintenance Machine Hours 200,000 13,000 37,000 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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