As the world reports on inflation, companies are taking steps to adjust their prices and manage their resources. Citizens are worried that prices will increase to a level that is difficult. Attentive Corporation is a private corporation formed since 2000 for the purpose of selling products to local and regional economies. The government has consulted with Atten'tive for assistance with providing cheaper product options. As at January 2005, they switched to Activity Based Costing System and has been using it ever since. Due to the switch in costing methods, Attentive Company used multiple cost drivers, which has a direct cause/effect relationship in its applied overhead costs. This method allows for a better accounting of costs, which may invariably have transferred out and therefore reduce some manufacturing costs. The Chief Operating Officer held a meeting with all Department Heads on their operational budgets and to present a cash flow position of the company among other schedules. All management personnel have to prepare reports and schedules, based on their department and operational functions. The objective is to determine operational deficiencies and how they can reduce cost to meet customers' budget, while making a profit. An analysis of the reports will be circulated at the end of the month. The following data was reported in an interim memo: Atten'tive Corporation provided their expected annual manufacturing budget for 2022 - 120,000 Direct Labour Hours. Their payments budget projections show that for April $300,000, May $500,000 and June $200,000. Client Collections - April: $312,500, May: $371,000 and June: $890,000. The company has a desired ROI of 40% and it has invested $3,000,000 in assets. They are being conservative on their spending therefore Atten'tive Company has a policy to maintain a cash budget balance of $100,000. Any financing received from First Regional Bank is at an interest rate of 11%. During the year, Atten'tive Company sold 696,000 units at an average selling price of per unit $4.20 per unit.Atten'tive Company manufactures two products: Full range instruments and Half range instruments. During August, 50 Full range and 300 Half range were produced with overheads cost of $94.500. Cost drivers for each product Activity Pool Cost Drivers Estimated Full Range Half range Total Overhead Materials handlings Number of requisitions $40,000. 400 600 1,000 Machine Setups Number of setups 27,500. 200 300 500 Quality inspections Number of inspections 27,000. 200 400 600 Required: (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for August to the two products using Activity Based Costing (ABC)