Swifty, Inc decided to implement the activity based costing approach in its use. However the controller is wondering is instead of only two activity cost pools they should expand to three cost pools based on the following

Family Model Deluxe Model

Direct labor costs $71,400142,800$

Machine Hours $2,0002,000$

Setup hours $200800$

Packaging hours $5075$

The estimated overhead of $428,400$ is allocated as follows machining activity cost pool $228,480$ machine set up $161,840$ and packaging $38,080.$

$1$ Determine the overhead rated using the activity based costing approach with three cost pools.

$2$ calculate the overhead allocation for the family model and the deluxe model using three activity cost pools

What is the difference between two activity pools and three activity costs pools. Is the difference worth using the third activity cost pool?