Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:

Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow: Number of machine hours Number of material moves Number of setups Standard Model 26,000 600 90 Deluxe Model 31,000 900 550 Total estimated overhead costs are $344,380, of which $157,500 is assigned to the material handling cost pool and $186,880 is assigned to the setup cost pool Required: 1. Calculate the overhead assigned to each product using the traditional cost system. (Round the overhead rate to four decimal places.) Overhead assigned Standard Model Deluxe Model 2. Calculate the overhead assigned to each product using ABC. Overhead Assigned Standard Model Deluxe Model