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 $782,820 is based on 36,000 machine hours. In an initial analysis of overhead costs, Eric Parker has identified the following activity cost pools. Cost Pool Expected Cost Expected Activities Product assembly $ 295,200 36,000 Machine hours Mene setup and calibration 248,200 1,700 setups Product inspection 127,280 1,720 batches Raw materials storage 112,140 534,000 pounds $ 782,820 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. Component Component Driver Usage 3F5 T76 Machine hours 880 11,600 Setups 36 21 Batches 15 10 Pounds of raw materials 10,000 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.g. 5.27 and round final answers to o decimal places, e.g. 5,275.) Component 3F5 Component T76 Total Overhead allocated 36 21 Setups Batches Pounds of raw materials 10 15 10,000 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.g. 5.27 and round final answers to 0 decimal places, e.g. 5, Component 3F5 Component T76 Total Overhead allocated (b) Calculate the total overhead allocated to each component under activity-based costing (Round overhead rates to 2 decimal places, e.g. 5.27 and round final answer to decimal places, e.g. 5,275) Component 3F5 Component 176 Total Overhead allocated $ Click if you would like to Show Work for this question Open Show Work LINK TO TEXT LINK TO VIDEO Question Attempts: 0 of 15 used SAVE FOR LATER SUBMIT ANSWER Next ty MacBook Pro Q Search or type URL 888 $ T 5 ) 6 7 00 9 O delete T Y U } O - P [ 1 G H J K L V B N M