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Recent success has yielded an order for 1,100 tables. Assume direct labor costs per hour of $25. A company has traditionally allocated its overhead based
Recent success has yielded an order for 1,100 tables. Assume direct labor costs per hour of $25. A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: \begin{tabular}{lccc} & \multicolumn{2}{c}{ Estimated Activity } & \\ \cline { 2 - 3 } Activity Center & Product 1 & Product 2 & Estimated Cost \\ \hline Machine Setups & 15 & 45 & $11,400 \\ Assembly Parts & 1,500 & 1,500 & 72,300 \\ Packaging Pieces & 750 & 600 & 82,350 \\ Machine Hours per Unit & 4 & 3 & \\ Production Volume & 750 & 1,500 & \\ & & & \end{tabular} A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 1 Product 2 Allocation per unit $
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