EcoFabrics has budgeted overhead costs of $$982,800.$ It has assigned overhead on a plantwide basis to its two products $($wool and cotton$)$ using direct labor hours which are estimated to be $468,000$ for the current year. The company has decided to experiment with activity$-$based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting $($cost driver is machine hours$)$ and design $($cost driver is number of setups$).$ Total estimated machine hours is $208,000,$ and total estimated number of setups is $1,560.$ Overhead allocated to the cutting cost pool is $$374,400$ and $$608,400$ is allocated to the design cost pool. Additional information related to product usage by these pools is as follows.

$\backslash$table$[[,$Wool,,Cotton$],[$Machine hours,$104,000,,104,000],[$Number of setups,$1,040,,520]]$

Calculate the overhead rate using activity based costing. $($Round per machine hour to $2$ decimal places, e$.$g$.12\mathrm{.}25.)$

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$.12\mathrm{.}25.)$

Overhead rates using the traditional approach

$

per direct labor hour