EcoFabrics has budgeted overhead costs of $1,086,750. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 517,500 for the current year. The company ha 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 alocated to the cutting cost pool $414,000 and $672,750 is allocated to the design cost Pool. Additional information related to these pools is as follows. Wool Cotton Total Machine hours 115,000 113,000 230,000 Number of setups 1.150 575 1.725 Calculate the overhead rate using activity based costing. (Round answers to 2 decmal places, e.g. 12.25.) Overhead rates for activity-based costing Cutting Design per machine hour per setup Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing. Wool uct lineCotton line Overhead Allocateds LINK TO TEXT LINK TO TEXT 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 hour 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