A) Soga Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Amnah, has developed the following information: Car Truck Estimated wheels produced40,00010,000 Direct labor hours per wheel 1 3 Total estimated overhead costs for the two products lines are $770,000. Required: (i) Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.(4 marks) (ii) Amnah is not satisfied with the traditional method of allocating overhead because she believes that most of the overhead costs relate to the truck wheels product line because of its complexity. She therefore develops the following three activity cost pools and related cost drivers to better understand these costs. Activity cost poolsExpected use ofEstimated overhead cost driverscosts Setting up machines1,000 setups$220,000 Assembling70,000 labor hours$280,000 Inspection 1,200 inspections$270,000 Compute the Activity-based overhead rates for these three cost pools.(5 marks) (B) What are the conditions that would indicate to the management of a firm that they should switch from traditional costing to activity-based costing.(6 marks)