Sheffield, Inc. produces two types of gas grills: a family model and a deluxe model. Sheffield's controller has decided to use a plantwide

overhead rate based on direct labor costs. The president of the company recently heard of activity$-$based costing and wants to see

how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup.

Presented below is information related to the company's operations:

Total estimated overhead costs are $$444,600.$ Overhead cost allocated to the machining activity cost pool is $$266,760$ and $$177,840$

is allocated to the machine setup activity cost pool.