Exercise 17-3 EcoFabrics has budgeted overhead costs of $1,143,450. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 544,500 for the current year. The company has decided to experiment with activity based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $435,000 and $707,850 is allocated to the design cost pool. Additional information related to these pools is as follows Machine hours Number of setups Wool 121,000 1,210 Cotton 121,000 605 Total 242,000 1,815 Calculate the overhead rate using activity based costing. (Round answers to 2 decimal places, e.g. 12.25.) Overhead rates for activity-based costing Cutting per machine hour Design per setup Determine the amount of overhead allocated to the wool product line and the cotton product line using activity based costing. Wool product lineCotton product line Overhead Allocated calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.)