(B) A new cost accountant has suggested that the company implement an activity-based costing (ABC) system. After viewing the factory's manufacturing activities and costs, the cost accountant has gathered the following budgeted information: Wans Rans Units produced and sold Direct labour hours used Direct labour cost Number of times handled Number of parts Number of design changes Number of product setups 168,750 337,500 3,375,000 60,000 18,000 3,000 12,000 337,500 1,012,500 15,187,500 30,000 12,000 1,500 9,000 Additionally, the cost accountant has determined that the manufacturing overhead costs budgeted for 2021 were as follows: Cost pool Activity Costs Handling Number of parts Design changes Setups $10,125,000.00 $8,100,000.00 $11,137,500.00 $9,450,000.00 $38,812,500.00 Using activity-based costing, complete the following: iv. Select suitable cost allocation bases for each activity and compute the activitybased costing allocation rates. Compute the total manufacturing cost for each product line. vi. Compute the manufacturing cost per unit for each product line. (C).0What evidence exists that there is product diversity and cost distortion in the simple costing system? Please discuss. V