Question 2 of 4 3.13/6.25 Your answer is partially correct. Eric Parker 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 $1,110,340 is based on 55,517 machine hours. In an initial analysis of overhead costs, Eric has identified the following activity cost pools. Cost Pool Expected Cost Expected Activities Product assembly $ 546,000 45,500 machine hours Machine setup and calibration 410,400 5,700 Setups Product inspection 76.440 1.470 batches Raw materials storage 77,500 310.000 pounds $ 1.110,340 Eric Parker 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. Component 3F5 1.240 Driver Usage Machine hours Setups Batches Pounds of raw materials Component 176 9,800 18 15 10.000 15 10.000 o e DELL Question 2 of 4 3.13/6.25 $ 1,110,340 Eric Parker 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. Component T76 Driver Usage Machine hours Setups Batches Pounds of raw materials Component 3F5 1.240 44 15 10,000 9.800 18 10.000 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base Component 3FS Component 176 S 30259.81 $ 239150.15 Total Overhead allocated (b) Calculate the total overhead allocated to each component under activity-based costing. (Round overhead rates to 2 decimal places eg. 5.27 and round final answers to decimal places, es 5,275.) Component 3F Component 176 Co search DELL