Exercise 7-9 Your answer is partially correct. Try again. Eric Parker has been studying his department's profitabilty 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 $804,930 is based on 33,000 machine hours. In an initial analysis of overhead costs, Eric Parker has dentified the tollowing activity cost pools Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost 5319,200 269,800 127,920 88,060 004,980 Expected Activities 3,000 Machine hours 1,900 setups 1,640 batches 518,000 pounds 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 Setups Batches Pounds of raw materials Component 3FS Component T76 960 42 15 1D,0DD 11,200 19 1D a calculate the total overhead allocated to ea component under the traditional me ad using machina haurs as he overhead appicatian base Round ouer ead rates o 2 decima p ace e 7-5.27 ar round malanswers to o de mil places e g 5,275 Component 3F5 Component T76 20,336.34 Total Overhead alocated (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, eg. 5,275.) Component 3FS Component T76 9822 Total Overhead alocated LIK TO LIN TOV