Your answer is correct. Determine the difference in allocation between the two approaches. Bonita, Inc produces two types of gas grills; a family model and a deluxe model, Eonita's controller has decided to use a plantwide owerhead 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 $435,600. Overhead cost allocated to the machining actwity cost pool is 5261,360 and 5174,240 is allocated to the machine setup activity cost pool (a) Your andwo kiscorrect: Campute the overhead rate using the traditional (plantwide) approxch ground enewer to 2 decimal places, es. 15.25) Overheadrate 5 Bonita, Inc decided to implement the activity based costing approach and was quite successful in its use. However, the controller is wondering if instead of only two activity cost pools, they should expand to three activity cost pools based on the following: The estimsted overhead of $435,600 is allocated as follows machinine activity cost pool $232,320, machineset up $164,560 and packaging $38,720. (1) Determine the overbead rates using the activity bused costing approach with three cost pools. (Round answer to 2 decimal ploces, e. 15.25 ) Your answer is correct. Compute the overhead rates using the activity-based costing approach. (Round answers to 2 decimal ploces, eg 15.25) (2) Calculate the overhead allocation for the family model and the deluxe model using three activity cost pools. What is the difference in albcation between fwo activity cast pools and three activity cost pools? is the dafference in allocation worth usine the therd activity cost pool? Difference The additianal cost pool the overhead cont allocation significantly