A & b ??

Kevin Hall 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 $1,028,060 is based on 51,403 machine hours. In an initial analysis of overhead costs, Kevin has identified the following activity cost pools. Expected Cost $ 495,000 Cost Pool Product assembly Machine setup and calibration Product inspection Raw materials storage Expected Activities 45,000 machine hours 5,600 setups 397,600 74,460 1,460 batches 61.000 305.000 pounds $ 1,028,060 Kevin Hallis 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 products Component 3F5 Component 176 Driver Usage Machine hours Setups 1,220 9,900 43 17 Batches 20 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 overhead application base. Component 3F5 Component 176 s $ Total Overhead allocated (b) Calculate the total overhead allocated to each component under activity-based costing (Round overhead rotes to 2 decimal places, e.8.5.27 and round final answers to decimal places, eg. 5,275) Component 3F5 Component 176 $ Total Overhead allocated