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 3F5 1,280 Driver Usage Machine hours Setups Batches Pounds of raw materials Component T76 9,600 20 10 10,000 40 15 10,000 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base 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 answers to 0 decimal places, e.g. 5,275.) Component 3F5 Component T76 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 $1,248,060 is based on 41,602 machine hours. In an initial analysis of overhead costs, Eric has identified the following activity cost pools. Cost Pool Expected Cost Expected Activities Product assembly 651,000 46,500 machine hours Machine setup and calibration 436,600 5,900 setups Product inspection 80,460 1,490 batches Raw materials storage 80,000 320,000 pounds $ 1,248,060 $ 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 3F5 Component T76 Driver Usage Machine hours Setups Batches Pounds of raw materials 1,280 40 9,600 20 10 15 10,000 10,000