Julio produces two types of calculators, 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 activity pools: materials handling and setup. The collected data follow.

$\backslash$table$[[,$Standard,$],[,$Model,Deluxe Model$],[$Number of machine hours,$25,000,30,000],[$Number of material moves,$550,850],[$Number of setups,$80,500]]$

Total estimated overhead costs are $$303,560,$ of which $$140,000$ is assigned to the materials handling pool and $$163,560$ is assigned to the setup pool.

Required:

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

Calculate the overhead assigned to each product using ABC.

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