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 $883,585 is based on 39.500 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 $337.725 39,500 Machine hours 289,800 2,100 setups 129,560 1.580 batches 126,500 506,000 pounds $ 883,585 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 T76 3F5 10,900 1,020 45 Driver Usage Machine hours Setups Batches 21 10 10,000 10,000 aterials (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, eg. 5.27 and round final answers to decimal places. 5,275.) Component 3F5 1020 Component 176 Total Overhead allocated $ $ 81.06 (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 answers to decimal places, eg. 5,275.) Component T76 Component 3F5 866.25 $ 81.06 Total Overhead allocated