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View Policies Current Attempt in Progress Robert Williams has been studying his department's profitability reports for the past six months. He has just completed a

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View Policies Current Attempt in Progress Robert Williams 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 5 701.340 is based on 35,067 machine hours. In an initial analysis of overhead costs. Robert has identified the following activity cost pools. Cost Pool Expected Cost Expected Activities Product assembly $ 420,000 35,000 machine hours Machine setup and calibration 192.400 3,700 setups Product inspection 40.640 1.270 batches Raw materials storage 48,300 210,000 pounds $ 701,340 Robert Williams 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. Driver Usage Component 3F5 Component 176 Machine hours B40 11.800 Setups 38 19 Batches 15 15 Pounds of raw materials 10,000 10.000 Lal Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base o HURCI SRP Component 176 Machine hours 840 11,800 Setups 38 19 Batches 15 15 Pounds of raw materials 10.000 10,000 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the over application base. Component 3F5 Component 176 Total Overhead allocated $ $ (b) Calculate the total overhead allocated to each component under activity-based costing (Round overhead rates to 2 decimal es 527 and round final answers to decimal places, eg. 5,275.) Component 3F5 Component 176 Total Overhead allocated $ e Textbook and Media Susforder

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