E4-14 (Algo) Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-5] Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two activity pools: materials handling and setup. The collected data follow: Number of machine hours Number of material moves Number of setups Standard Model 26,600 630 100 Deluxe Model 31,600 930 580 Total estimated overhead costs are $406,120, of which $202,800 is assigned to the materials handling pool and $203,320 is assigned to the setup pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system. 2. Calculate the overhead assigned to each product using ABC.

E4-14 (Algo) Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-5] Julio produces two types of calculators, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two activity pools: materials handing and setup. The collected data follow: Total estimated overhead costs are $406,120, of which $202,800 is assigned to the materials handling pool and $203,320 is assigned to the setup pool. Required: 1. Calculate the overhead assigned to each product using the traditional cost system 2. Calculate the overhead assigned to each product using ABC