Direct labor costs Family Model Deluxe Model $72,900 $145,800 Machine hours 2,000 2,000 Setup hours 200 800 Packaging hours 50 75 The estimated overhead of $437,400 is allocated as follows: machining activity cost pool $233,280, machine set up $165,240 and packaging $38,880. (1) Determine the overhead rates using the activity-based costing approach with three cost pools. (Round answers to 2 decimal places, e.g. 15.25.) Machining Machine set up Packaging +A A Overhead Rate per hour per hour per hour.

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 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: Family Model Deluxe Model Direct labor costs Machine hours Setup hours $72,900 $145,800 2,000 2,000 200 800 Total estimated overhead costs are $437,400. Overhead cost allocated to the machining activity cost pool is $262,440 and $174,960 is allocated to the machine setup activity cost pool. (a) Your answer is correct. Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 15.25.) (b) Overhead rate $ eTextbook and Media Your answer is correct. 2 Assistance Used Attempts: 1 of 3 used. Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, e.g. 15.25.) Overhead Rate Machining $ 65.61 per hour Machine set up $ 174.96 per hour eTextbook and Media Attempts: 1 of 3 used