Exercise 4-3 al-az, b1 b2 (Video) Ecofabrics has budgeted overhead costs of $1,030,050. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 490,500 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 $392.400 and $637,650 is allocated to the design cost pool. Additional information related to these pools is as follows Wool 109,000 1,090 Cotton 109,000 Total 218,000 Machine hours Number of setups 545 1,635 x Your answer is incorrect. Try again. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing, Wool product line Cotton product line Overhead Allocated VIDEO: SIMILAR EXERCISE LINK TO TEXT LINK TO TEXT x Your answer is incorrect. Try again. Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.) per direct labor hour Overhead rates using the traditional approach VIDEO: SIMILAR EXERCISE x Your answer is incorrect. Try again. What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton Wool product line cotton product line Overhead Allocated