Sunshine Company currently uses traditional costing procedures

Sunshine Company currently uses traditional costing procedures, applying $400,000 of overhead to products X and Y on the basis of direct labor hours. The firm is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow.ProductPool No. 1(Driver: DLH)Pool No. 2(Driver: SU)Pool No. 3(Driver: PC)X400251,300Y60075 700Pool Cost$160,000$140,000$100,000 The overhead cost allocated to product Y by usingtraditionalcosting procedures would be:$ 36,000.$160,000.$240,000.$266,000.$300,000″Sunshine Company currently uses traditional costing procedures, applying $400,000 of overhead to products X and Y on the basis of direct labor hours. The firm is considering a shift to activity-based costing and the creation of individual cost pools that will use direct labor hours (DLH), production setups (SU), and number of parts components (PC) as cost drivers. Data on the cost pools and respective driver volumes follow.ProductPool No. 1(Driver: DLH)Pool No. 2(Driver: SU)Pool No. 3(Driver: PC)X400251,300Y60075 700Pool Cost$160,000$140,000$100,000 The overhead cost allocated to product Y by usingtraditionalcosting procedures would be:

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