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 $822,550 is based on 39,000 machine hours In an initial analysis of overhead costs, Eric Parker has identified the following activity cost pools Cost Pool Expected Cost Expected Activities $331,500 284,950 129,600 76,500 $822,550 39,000 Machine hours Product assembly Machine setup and calibration Product inspection Raw materials storage 2,050 setups 1,600 batches 510,000 pounds 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 Component T76 11,000 20 15 10,000 1,000 20 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. 5,275.) Component 3FS 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 answers to 0 decimal places, e.g. 5,275.) Component 3F5 Component T76 Total Overhead allocated