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PA10. LO 6.4 Carlton's Kitchen's three cost pools and overhead estimates are as follows: Estimated Use per Use per Activity Cost Pool Cost Driver

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PA10. LO 6.4 Carlton's Kitchen's three cost pools and overhead estimates are as follows: Estimated Use per Use per Activity Cost Pool Cost Driver Overhead Product A Product B Machine setups Setups $128,000 5,000 3,000 Assembly Number of parts Machine hours 105,000 25,000 45,000 150,000 12,500 37,500 Machine maintenance Compare the overhead allocation using: A. The traditional allocation method B. The activity-based costing method (Hint: the traditional method uses machine hours as the allocation base.)

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