International Fabrics has budgeted overhead costs of $964,000. It has allocated overhead on a plant-wide basis to its two products (wool and cotton) using direct labour hours, which are estimated to be 482,000 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 (the cost driver is machine hours) and design (the cost driver is the number of set-ups). Overhead allocated to the cutting cost pool is $405,240 and $561,000 is allocated to the design cost pool. Additional information related to these pools is as follows: Wool Cotton Total Machine hours 101,310 101,310 202.620 Number of set-ups 1,100 550 1,650 (a) Your answer has been saved. See score details after the due date. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing. Wool Cotton Overhead assigned $ 576620 389620 Attempts: 1 of 1 used (b) What is the difference between the allocation of overhead to the wool and cotton product lines using activity-based costing versus the traditional approach, assuming direct labour hours were incurred evenly between wool and cotton? (Enter negative answers using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).) Activity-based costing (A) Traditional costing (B) Difference (A) - (B) Wool 576620 Cotton 389620 Save for Later Last saved 5 minutes ago. Attempts: 0 of 1 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes