A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Activity Center Machine Setups Assembly Parts Packaging Pieces Machine Hours per Unit Production Volume Product 1 Allocation per unit $ Estimated Activity Product 1 15 Product 1 1,500 250 4 750 Product 2 X $ 45 X $

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A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: Activity Center Machine Setups Assembly Parts Packaging Pieces Machine Hours per Unit Production Volume Product 1 Allocation per unit $ Estimated Activity Product 1 15 Product 1 1,500 250 4 750 Product 2 X $ 45 X $ 1,500 200 A. How much overhead would be allocated to each unit under the traditional allocation method? Round your answers to two decimal places. 1,500 3 Product 2 Allocation per unit $ B. How much overhead would be allocated to each unit under activity-based costing? Round your answers to two decimal places. Product 2 Estimated Cost X $12,000 71,700 27,450 X

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The detailed answer for the above question is provided below: Requirement A: Product 1 Product 2 All View the full answer