Coronado, Inc. produces two types of gas grills: a family model and a deluxe model. Coronado'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 war

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:

Total estimated overhead costs are $$462,600.$ Overhead cost allocated to the machining activity cost pool is $$277,560$ and $$185,04$

Is allocated to the machine setup activity cost pool.