1. Activity Base Costing (ABC) Slowdown has two produce lines for it well marketed Ice cold Fruit drink: 20 Ounces and 40 ounces. The company assigns $110,000.00 in manufacturing overhead costs to three departments; Mixing, Bottling and Packing. Additional information about each product line is shown below; 20 ounces 40 ounces Number of units Produced per month 50000 20000 Number of Units Sold per month 44000 19000 Direct Material cost per unit 3 4 Direct Labor Cost per hour 10 10 Direct Labor hours per unit 0.2 0.3 The following cost pool and cost driver was used Cost Pool Mixing Department Bottling Department Packing Department Total Allocation Amount Allocated 50,000 40,000 20,000 110,000 Cost Driver Machine hours Bottle requisitions Direct Labor hours Total Drive Volume 240 MH 77,000 3,000 DLH The amount of driver activity corresponding to each product line is as follow Cost Driver 20 ounces 40 ounces Machine Hours 140 MH 100 MH Bottle Requisitions 45,000 32,000 Direct Labor hours 1600 1400 (a) Allocate manufacturing overhead costs to each product line using Bottle requisitions as a single cost driver. (b) Allocate manufacturing overhead costs to each product line using the ABC approach. (c) Compute the total manufacturing costs assigned to each product line when using ABC and traditional method. As a manager advice the CEO of the company what is the most cost effective method that should be used. Give some key example. (Hint: keep your answer short, sweet and simple)