Exercise 7.26 Swifty Company produces two products: MB-R and MB-X. Currently, Swifty allocates overhead based on direct labour hours. Overhead is estimated at $321,800. The cost accountant realizes that there are some differences in how resources are being used in producing these two components and is considering the use of ABC to allocate overhead. She determines that overhead is caused by testing and Inspections, $91,200; machine setup, $74,000; machine stamping, $102,000; and plant maintenance $54,600. Swifty estimates the following activitles related to the overhead costs: Activity Cost Driver MB-R MB-X Testing and inspections Number of testing and inspections 30 380 Machine setup Machine stamping Number of machine hours22,000 12,000 Plant maintenance Number of setups 140 60 Direct labour hours 1,600 2,600 Compute the amount of overhead assigned to each product using the traditional (i.e., direct labour hours) costing method. (Round labor rate per hour to 2 decimal places, e.g- 52.75 and the final answers to O decimal places, e.g. 5,275.) Overhead assigned MB-R* MB-Xs Compute the amount of overhead assigned to each product using ABC. Activity Testing and inspections Machine setup Machine stamping Plant maintenance MB-R OH MB-x OH LINK TO TEXT LINK TO TEXT LINK TO TEXT