Exercise 7-9 Your answer is partially correct. Try again. 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 $995,100 is based on 46,000 machine hours. In an initial analysis of overhead costs, Eric Parker has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost Expected Activities 46,000 Machine hours $420,900 340,200 124,080 2,700 setups 1,320 batches 09,920 458,000 pounds $995,100 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 9,700 19 10 10,000 1,260 Batches 20 Pounds of raw materials 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 3F5Component T76 27,254 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 O decimal places, e.g. 5,275.) Component 3FS Component T76 Total Overhead allocated