Chris Anderson has been studying his departments profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the companys approach to allocating overhead to products based on machine hours. The current department overhead budget of $1,141,500 is based on 45,660 machine hours. In an initial analysis of overhead costs, Chris has identified the following activity cost pools.

Cost Pool		Expected Cost				Expected Activities
Product assembly			$	780,000		39,000	machine hours
Machine setup and calibration				270,000		4,500	setups
Product inspection				54,000		1,350	batches
Raw materials storage				37,500		250,000	pounds
			$	1,141,500

Chris Anderson is taking the next step in his exploration of activity-based costing and wants to examine the overhead costs that would be allocated to two of the departments four products. He has gathered the following budget information about each product.

Driver Usage		Component 3F5			Component T76
Machine hours		1,000			11,000
Setups		44			20
Batches		20			15
Pounds of raw materials		10,000			10,000

(a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base.

		Component 3F5		Component T76
Total Overhead allocated		$		$

(b) Calculate the total overhead allocated to each component under activity-based costing. (Round overhead rates to 2 decimal places, e.g. 5.27 and round final answers to 0 decimal places, e.g. 5,275.)

		Component 3F5		Component T76
Total Overhead allocated