Automatic Machines. is a distributor for slate products and has gathered the following information for two of their products: Supreme Machine Regular Machine Number of units 20,000 units 5,000 units Revenues 1,500,000 500.000 Cost of goods sold 500,000 300,000 For the 2023 operating year, indirect costs were budgeted as $900,000 and are currently being allocating to customers using activity based costing. In preparation, they compiled the following data on these two customers: Cost Pool Cost Cost Driver Supreme Regular Total Order processing 200,000 Number of orders 200 50 250 Assembly 300,000 Number of 1,750 1,250 3,000 assembly hours Cutting 400,000 Number of Man 2,000 500 2,500 hours Total 900,000 Paragraph v BI UVA Ev + v . . . Required: a. Using Activity based costing determine the cost of the indirect cost that should be allocated to each product.( 10 marks) Cost Pool Order processing Assembly Cutting Total b. Explain why a company would use activity-based costing? Also why would a company use plant wide rate? ( 4 marks)