EcoFabrics has budgeted overhead costs of $1,020,600. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be486,000for 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 $388,800and $631,800is allocated to the design cost pool. Additional information related to these pools is as follows.

Wool

Cotton

Total

Machine hours108,000108,000216,000Number of setups1,0805401,620

X Your answer is incorrect. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing. Wool product line Cotton product line Overhead Allocated tA eTextbook and Media X Your answer is incorrect. Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rates using the traditional approach $ per direct labor hourYour answer is incorrect. What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton? Wool product line Cotton product line Overhead Allocated 405000 eTextbook and Media Save for Later Last saved 1 hour ago. Attempts: 1 of 3 used Submit