EcoFabrics has budgeted overhead costs of $973,350. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 463,500 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). Overhead allocated to the cutting cost pool is $370,800 and $602,550 is allocated to the design cost pool. Additional information related to these pools is as follows. Wool Cotton Total 103,000 103,000 Machine hours Number of setups 206,000 1.030 515 1.545 places, e.g. 12.25.) Overhead rates for activity-based costing Cutting $ 1.8 per machine hour Design $ 390 per setup e Textbook and Media Your answer is correct. 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 587100 $ 386250 Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, es. 12.25.) Overhead rates using the traditional approach $ per direct labor hour e Textbook and Media