Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithson'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: Family Model Deluxe Model Direct labor costs $77,700 $155,400 Machine hours 2,000 2,000 Setup hours 200 800 Total estimated overhead costs are $466,200. Overhead cost allocated to the machining activity cost pool is $279,720 and $186,480 is allocated to the machine setup activity cost pool. Determine the difference in allocation between the two approaches. Family Model Deluxe Model Traditional $ $ ABC $ Difference $ $ Save for Later Attempts: 0 of 1 used Submit