7.9 (LO 2) Allocating overhead to products using activity-based costing Refer to the data in exercise 7.7. 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 Component 3F5 Component T76 Machine hours 1,000 10,000 Setups 60 30 Batches 30 8 Pounds of raw materials 20,000 20,000 Required a. Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base. b. Calculate the total overhead allocated to each component under activity-based costing. c. What can you conclude about the costs of the other two products? 7.9 (LO 2) Allocating overhead to products using activity-based costing Refer to the data in exercise 7.7. 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 Component 3F5 Component T76 Machine hours 1,000 10,000 Setups 60 30 Batches 30 8 Pounds of raw materials 20,000 20,000 Required a. Calculate the total overhead allocated to each component under the traditional method using machine hours as the overhead application base. b. Calculate the total overhead allocated to each component under activity-based costing. c. What can you conclude about the costs of the other two products