1- Precor manufactures a line of high-end exercise equipment of commercial quality. Assume that the chief accountant has proposed changing from a traditional costing system to an activity-based costing system. The financial vice president is not convinced, so she requests that the next large order for equipment be costed under both systems for purposes of comparison and analysis. An order from Slim-Way Salons, Inc., for 150 low-impact treadmills is received and is identified as the order to be subjected to dual costing. The following cost data relate to the Slim-Way order. Data relevant to both costing systems Direct materials $55,500 Direct labor hours 820 Direct labor rate per hour $ 18.00 Data relevant to the traditional costing system Predetermined overhead rate is 300% of direct labor cost Data relevant to the activity-based costing system Activity Cost Pools Cost Drivers Activity-Based Overhead Rate Expected Use of cost Drivers for Treadmill Order 330 22 Engineering design Engineering hours Machine setup Setups Machining Machine hours Assembly Number of subassemblies Packaging Packaging hours Building occupancy Machine hours $30 per hour $200 per setup $25 per hour $8 per subassembly $15 per hour $6 per hour 732 1,500 152 732 Required: Compute the total cost of the Slim-Way Salons, Inc. order under (a) The traditional costing system and (b) The activity-based costing system. (c) As a result of this comparison, which costing system is Precor likely to adopt? Why