Eric Parker has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of \$793,920 is based on 37,000 machine hours. In an initial analysis of overhead costs, Eric Parker has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost Expected Activities $ 307,100 37.000 Machine hours 259,200 1,800 setups 127,680 1.680 batches 99.940 526,000 pounds $ 793.920

(a) Calculate the total allocated to each component under the traditional method hours as the application base ( overhead to decimal placesand round final answers to decimal places Component Component 176 Total Overhead allocated

B (b) Calculate the total overhead allocated to each component under activity based costing (Round overhead to 2 decimal places, and round answers decimal , / Component 3F5 Component Total Overhead allocated

Eric Parker has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $793,920 is based on 37,000 machine hours. In an initial analysis of overhead costs, Eric Parker has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost Expected Activities $ 307,100 37.000 Machine hours 259,200 1,800 setups 127,680 1,680 batches 99,940 526,000 pounds $ 793,920 Eric Parker is taking the next step in his exploration of activity-based costing and wants to examine the overhead costs that would be allocated to two of the department's four products. He has gathered the following budget information about each product. Driver Usage Machine hours Setups Batches Pounds of raw materials Component 3F5 920 40 15 10,000 Component T76 11,400 23 15 10,000 (a) Calculate the total overhead allomated to each component under the traditional method using machine hours as the overhead application base. (Round overhead rates to 2 decimal places, eg, 5.27 and round final answers to decimal places, es, 52750 Component 3F5 Component T76 $ Total Overhead allocated $ 11.400 23 Machine hours Setups Batches Pounds of raw materials 920 40 15 10,000 15 10,000 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base. (Round overhead rates to 2 decimal places, e... 527 and round final answers to decimal places, es 5.275) Component 3F5 Component 176 Total Overhead allocated $ (b) Calculate the total overhead allocated to each component under activity-based costing (Round overhead rates to 2 decimal places, eg. 5.27 and round final answers to decimal places, es 5.275) Component 3F5 Component 176 Total Overhead allocated $ eTextbook and Media Save for at Attempts: 0 of 12 used Submit Answer Asment sent to Gradebook. Your