C3. 75000 A. Al Ayan Engineering LLC was established in the year 2018. The company is involved in the manufacturing of Desktop and Laptop computers. It is planning to introduce ABC method of costing to refine its existing system of costing. The details of various costs involved is given below: Cost Pool Amount - OMR Engineering $5000 Setups Labor 60000 Inspection 50000 Factory lease Factory utilities 45000 Advertising K5000 Training Demand Creation Maintenance of leaves 45000 115000 22000 40000 The following cost drivers and their capacities have been identified: Activity driver practical Capacity Labor hours 5500 Setup hours 3200 Engineering hours 1600 Inspection hours 2000 Machine hours 8000 Number of employees 650 Percentage increase in sales 15000 The cost of the facility-level activities is assigned using machine hours. You are required to create homogeneous cost pools. Identify the activities that belong to each pool and the activity driver that will be used for computing pool rates. (5 Marks) B. If Al Ayan Engineering LLC wants to follow the Target Costing, what will be the process of target costing that the company should follow-Explain with examples