Your answer is partially correct. Eric Parker 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 $1,098,160 is based on 54,908 machine hours. In an initial analysis of overhead costs, Eric has identified the following activity cost pools. Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Cost $ 664,000 313.600 61.160 59.400 $ 1098.160 Expected Activities 41.500 machine hours 4.900 setups 1.390 batches 270,000 pounds Eric Parker 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 Machine hours Setups Batches Pounds of raw materials Component 3F5 1.080 38 15 10.000 Component 176 10.600 17 15 10.000 (a) Calculate the total overhead sllocated to each component under the tradition to the overhead bocation base Question 2 of 4 3.13/6.25 E Raw materials storage 270,000 pounds 59,400 $ 1,098,160 Eric Parker 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. Component Component Driver Usage 3F5 Machine hours 1,080 10,600 Setups 38 Batches 15 Pounds of raw materials 10,000 10,000 T76 17 15 (a) Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base. Component 3FS Component 176 Total Overhead allocated 21600 $ 212000 (b) Calculate the total overhead allocated to each component under activity-based costing (Round overhead rates to 2 decimal places es. 5.27 and round final answers to decimal places, 6.8.5,275.) Component 3F5 Component 776 Total Overhead allocated Me