Concord, Inc. produces two types of gas grills: a family model and a deluxe model. Concord$$s controller has decided to use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity$-$based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company$$s operations:Current Attempt in Progress

Concord. Inc produces two types of gas grills: a family model and a deluee model. Concord's controller has decided to use a plantwide

overhead rate based on direct labor costs. The president of the company recently heard of activity$-$based costing and wants to see

how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup.

Presented below is information related to the compary's operations:

Total estimated overhead costs are $$457,200.$ Overhead cost allocated to the machining activity cost pool is $$274,320$ and $$182,880$

is allocated to the machine setup activity cost pool.

$($a$)$

Your answer is correct.

Compute the overhead rate using the traditional $($plantwide$)$ approech. $($Round answer to $2$ decimal places, egs. $15\mathrm{.}25.)$

Overhead rate $S$

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Attempts: $1$ of $3$ used

$($b$)$

Compute the overhead rates using the activity$-$based costing approach. $($Round answers to $2$ decimal ploces, es$.15\mathrm{.}25.)$

Overhead Rate

Machining $ per hour

Machine set up $ per hour

$($c$)$

Determine the difference in allocation between the two approaches.