A Company has two types of products: Standard and Custom. The company has used a plantwide overhead rate based on direct labour costs. The process people have heard of activity-based costing and want to see how the results would differ if this system were used. Two activity cost pool were developed: machining and machine setup. Presented below is information related to the company's operations. Standard Custom Direct labour costs 30 000 110 000 Machine hours 1000 1000 100 400 Setup hours Total estimated overhead costs are 240 000 . Overhead cost allocated to the machining activity pool is 140 000 and 100 000 allocated to the machine setup activity cost pool. , The tasks: (answers valid only with calculations) a) Compute the overhead rate using traditional (plantwide) approach. (2 p) b) Compute the overehead rates using the activity-based costing approach (2 p) c) Determine the difference in allocation of overheads to the Standard and Custom products between the two approaches (4 p)