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EcoFabrics has budgeted overhead costs of $1,011.150. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor

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EcoFabrics has budgeted overhead costs of $1,011.150. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 481,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $385,200 and $625,950 is allocated to the design cost pool. Additional information related to these pools is as follows. Wool Cotton Total Machine hours 107.000 107.000 214,000 Number of setups 1,070 535 1,605 (61) Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, c.8. 12.25.) Overhead rates using the traditional approach $ per direct labor hour e Textbook and Media Save for Later Attempts: 0 of 5 used Submit

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