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 $766,095 is based on 34,500 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 $ 277,725 34.500 Machine hours 230.950 1.550 setups 126,380 1,780 batches 131,040 546,000 pounds $ 766,095 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 cch product. Component 3F5 820 Driver Usage Machine hours Setups Batches Pounds of raw materials Component T76 11.900 18 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, c-s. 5.27 and round final answers to decimal places, es 5,275.) Component 3F5 18.208.63 Component 176 264180 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, eg. 5,275.) Component 3F5 Component T76 Total Overhead allocated