Problem 8 - Clinton Company produces two products, Bill and Hillary. Overhead has traditionally been allocated on the basis of direct labor hours. Direct labor has an actual cost of $15 per labor hour. Clinton recently sat up 3 activity centers to implement ABC costing. Information concerning this follows:

			Actual Activity
	Estimated Activity	Estimated Cost	Bill	Hillary
Machine setups	80 setups	$98,000	29 setups	48 setups
Molding	20,000 sq. feet	$185,000	13,000 square feet	7,000 square feet
Packaging	2,000 crates	$92,000	410 crates	1,690 crates
Direct labor	7,110 hours	$108,701	2.6 hours per unit	1.4 hours per unit
Estimated volume	2,000 units		1,550 units	2,200 units

A. How much overhead is allocated to each Hillary under the traditional approach?

B. Determine the overhead allocated per unit to each HIllary under ABC.

C. List the names of which of the items provided for Clinton Company are cost pools under ABC.