EcoFabrics has budgeted overhead costs of $1,096,200. It has assigned overhead on a plantwide basis to...

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EcoFabrics has budgeted overhead costs of $1,096,200. It has assigned overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 522,000 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 232,000, and total estimated number of setups is 1,740. Overhead allocated to the cutting cost pool is $417,600 and $678,600 is allocated to the design cost pool. Additional information related to product usage by these pools is as follows. Wool Cotton Machine hours 116,000 116,000 Number of setups 1,160 580 Calculate the overhead rate using activity based costing. (Round per machine hour to 2 decimal places, e.g. 12.25.) Overhead rates for activity-based costing Cutting $ per machine hour Design $ per setup eTextbook and Media 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 $ $ eTextbook and Media Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rates using the traditional approach eTextbook and Media $ per direct labor hour What amount of overhead would be assigned 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 $ $ EcoFabrics has budgeted overhead costs of $1,096,200. It has assigned overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 522,000 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 232,000, and total estimated number of setups is 1,740. Overhead allocated to the cutting cost pool is $417,600 and $678,600 is allocated to the design cost pool. Additional information related to product usage by these pools is as follows. Wool Cotton Machine hours 116,000 116,000 Number of setups 1,160 580 Calculate the overhead rate using activity based costing. (Round per machine hour to 2 decimal places, e.g. 12.25.) Overhead rates for activity-based costing Cutting $ per machine hour Design $ per setup eTextbook and Media 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 $ $ eTextbook and Media Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rates using the traditional approach eTextbook and Media $ per direct labor hour What amount of overhead would be assigned 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 $ $