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Gomez's Fabrics has budgeted overhead costs of $1,000,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct

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Gomez's Fabrics has budgeted overhead costs of $1,000,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 100,000 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 $406,000 and $594,000 is allocated to the design cost pool. Additional information related to these pools is as follows. Cost Pools Wool Cotton Total Machine Hours 58,000 58,000 116,000 Number of Setup 2,500 1,500 4,000 What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming 60,000 of the direct labor hours were incurred for the wool and 40,000 of the direct labor hours were incurred for the cotton? What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming 60,000 of the direct labor hours were incurred for the wool and 40,000 of the direct labor hours were incurred for the cotton? Round overhead rate to 2 decimal places, e.g. 12.25. Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Responses - Traditional Costing Wool Product Cotton Product Overhead Allocated $ $ What amount of overhead would be allocated to the wool and cotton product lines using the activity-based costing? Round overhead rate to 2 decimal places, e.g. 12.25. Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. What amount of overhead would be allocated to the wool and cotton product lines using the activity-based costing? Round overhead rate to 2 decimal places, e.g. 12.25. Then, round final number (overhead costs) to the nearest dollar. If your calculation is $10.01, enter 10. When typing your responses, do NOT include a dollar sign. For example, if your answer is $10,000, you should be typing 10,000 or 10,000.00 without any dollar sign. Responses - ABC Wool Product Cotton Product Overhead Allocated $ $ Question 11 4 pts

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