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:

Total estimated overhead costs are $$303,560,$ of which $$140,000$ is assigned to the material

handling cost pool and $$163,560$ is assigned to the setup cost pool.

Required:

Calculate the overhead assigned to each product using the traditional cost system.

Calculate the overhead assigned to each product using ABC.