Michael Jones has been studying his department's profitability reports for the past six months. He has just completed a managerial accounting course and is beginning to question the company's approach to allocating overhead to products based on machine hours. The current department overhead budget of $752,440 is based on 37,622 machine hours. In an initial analysis of overhead costs, Michael has identified the following activity cost pools. Cost Pool Product assembly Expected Activities Expected Cost $ 461,500 35,500 machine hours Machine setup and calibration 201,400 3,800 setups Product inspection 42,240 1,280 batches Raw materials storage 47,300 215,000 pounds $ 752,440 Michael Jones is taking the next step in his exploration of activity-based costing and wants to examine the overhead costs that would be allocated to two of the department's four products. He has gathered the following budget information about each product. Driver Usage Component 3F5 Component T76 Machine hours 860 11,700 Setups 37 20 Batches 20 10 Pounds of raw materials 10,000 10,000 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base. Component 3F5 17200 Total Overhead allocated Component T76 234000 (b) Calculate the total overhead allocated to each component under activity-based costing. (Round overhead rates to 2 decimal places, e.g. 5.27 and round final answers to O decimal places, e.g. 5,275.) Total Overhead allocated Component 3F5 1346.58 SA $ Component T76 155490