a) calculate overhead rate using abc method

b) determine amount of overhead allocated to the wool product line and cotton product line using abc method

c) what amount of overhead would be allocated to the wool and cotton product lines using traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?

Question 6 of 13 -/1 View Policies Current Attempt in Progress EcoFabrics has budgeted overhead costs of $1,011,150. It has allocated overhead on a plantwide basis to its two products (wool an cotton) using direct labor hours which are estimated to be 481,500 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost poolis $385,200 and $625,950 is allocated to the design cost pool. Additional information related to these pools is as fo s follows Machine hours Number of setups Wool 107.000 1.070 Cotton 107.000 535 Total 214,000 1,605 (a 1) Calculate the overhead rate using activity based costing (Round answers to 2 decimal places, es. 12.25.) Overhead rates for activity-based costing Cutting per machine hour $ Design per setup