EcoFabrics has budgeted overhead costs of $1,030,050. It has assigned overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 490,500 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). Total estimated machine hours is 218,000, and total estimated number of setups is 1,635. Overhead allocated to the cutting cost pool is $392,400 and $637,650 is allocated to the design cost pool. Additional information related to product usage by these pools is as follows. Wool Cotton Machine hours 109,000 109,000 Number of setups 1,090 545 (a1) Your Answer Correct Answer Your answer is correct Calculate the overhead rate using activity based costing. (Round per machine hour to 2 decimal places, eg. 12.25) Overhead rates for activity-based costing Cutting 16 per machine hour Design $ 390 per setup Your answer is correct Determine the amount of overhead assigned to the wool product line and the cotton product line using activity-based costing Wool product line Cotton product line Overhead Allocated $ 621.300 408,750 eTextbook and Media Solution (b1) Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, eg. 12.25) Overhead rates using the traditional approach $ per direct labor hour Save for Later Attempts: 2 of 2 used Attempts: 0 of 2 used Submit Answer