help with part d

Bonita, Inc. produces two types of gas grills: a family model and a deluxe model. Bonitas controller has decided to use a use a plantwide overhead rate based on direct labor costs. The president of the company recently heard of activity based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed machining and machine setup. Presented below is information related to the company's operations: Family Model Deluxe Model $76,800 $153,600 Direct labor costs Machine hours Setup hours 2,000 2,000 200 800 allocated to the machining activity cost poolis $276,480 and $184,320 is Total estimated overhead costs are $460,800 Overhead allocated to the machine setup activity cost pool Your answer is correct Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, el. 15.25.) Overhead rate S 2 Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal places, eg 15.25) Overhead Rate Machining $ 69.12 per hour Machine set up $ 18432 per hour eTextbook and Media Attempts: 1 of 3 used (o ) Your answer is correct Determine the difference in allocation between the two approaches Family Model Deluxe Model Traditional $ 153600 $ 307200 S 175104 $ ABC 285696 $ Difference $ 21504 21504 Bonita, Inc. decided to implement the activity-based costing approach and was quite successful in its use. However, the controller is wondering it instead of only two activity cost pools, they should expand to three activity cost pools based on the following Deluxe Model Family Model $76,800 $153,600 2,000 2,000 Direct labor costs Machine hours Setup hours Packaging hours 200 800 50 75 The estimated overhead of $460,800 is allocated as follows: machining activity cost pool $245,760, machine set up $174,080 and packaging $40,960 (1) Determine the overhead rates using the activity based costing approach with three cost pools. (Round answers to 2 decimal places, og 15.25) Overhead Rate Machining $ per hour Machine set up $ per hour Padaging S per hour (2) Calculate the overhead allocation for the family model and the deluxe model using three activity cost pools. Overhead Allocation Family model S Deluxe model $ What is the difference in allocation between two activity cost pools and three activity cost pool? is the difference in allocation worth using the third activity cost pool? Differences The additional cost pool the overhead cost allocation significantly