1) The Good Oil Company is located in London, Ontario. The company is budgeting $1,500,000 of overhead costs this year in their three departments, A, B, and C. The company performs 1,000 Department A transactions, 250,000 Department B transactions, and 2,000 Department C transactions per year in producing 600,000 gallons of vegetable oil and 400,000 gallons of olive oil. The following data are available: Department A B C Use of Cost Driver 1,000 250,000 2,000 Production information for the vegetable oil is as follows: Department A B Use of Cost Driver 400 100,000 800 Cost $500,000 $800,000 $200,000 C Calculate the total amount and per gallon of overhead assigned to the vegetable oil product. Explain the benefit in using Activity Based Costing. AC