Question: A company has traditionally allocated its overhead based on machine hours but collected this information to change to activity-based costing: Estimated Activity Activity Center Product

A company has traditionally allocated its overhead based on machine hours but collected this information to change to activity-based costing:
Estimated Activity
Activity Center Product 1 Product 2 Estimated cost
Machine setups 12 15 $50,000
Assembly parts 1,100 1,500 75,000
Packaging units 450 300 85,000
Machine hrs per unit 1.5 1.5
Production volume 2,000 2,000
How much overhead would be assigned to each unit under the traditional allocation method?
How much overhead would be assigned to each unit under activity-based costing?

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