Alliance Company manufactures two products (brushes and combs). The overhead costs have been divided into four cost pools that use the following activity drivers.
# of Setups
Cost per Pool 20,000
a. Compute the overhead rates for each of the overhead pools and activity drivers listed.
b. Allocate (assign) the overhead costs to Products Brushes and Combs using activitybased costing.
c. Compute the overhead rate using machine hours under the functional-based costing system (also called plant-wide rate or normal costing).
d. Allocate the overhead costs to Products Brushes and Combs using the functional-based costing system overhead rate calculated in part (c).