Catella Co. produces two types of pens: ballpoint pens and fountain pens. They currently use a simple costing system with one indirect cost pool and direct labor hours are used to allocate all their indirect costs. They are considering implementing an ABC system in 2018. An analysis of Catella's indirect costs reveals three key activities: ink mixing, molding plastic, and pen assembly. The company collected the following information related to the indirect cost activities for the year 2018: Activit Ink mixing Molding plastic Pen assembly31523 Activity cost Aetivity cost driver 3,673,200Pounds of material Machine hours $1 480,000 $1,323,600 Direct labor hours Information related to Catella's production for the year 2018 is as follows: Ballpoint Pen Fountain Pern Units sold Selling price per unit Direct materials cost per unit Direct labor cost per hour Direct labor hours per unit Pounds of material Machine hours 486,000 $15 $6 710,000 $60 S10 $28 1.25 0.25 110,000 90,000 95,000 Required (show all work (a) Calculate the cost of one ballpoint pen under the simple costing system for the year 2018. (b) Calculate the cost of one fountain pen under the simple costing system for the year 2018. (c) Calculate the three indirect cost rates under the ABC system for the year 2018. (d) Calculate the total amount of allocated indirect costs for the ballipoint pens under the ABC system for the year 2018 (e) Calculate the total amount of allocated indirect costs for the fountain pens under the ABC system (t) Calculate the cost of one ballpoint pen under the ABC system for the year 2018. (g) Calculate the cost of one fountain pen under the ABC system for the year 2018. (h) Compare the cost of one ballpoint pen under the simple costing system and under the ABC for the year 2018. system. If the company continues to use the simple costing system, is the product under- or overcosted, and by how much (on a per unit basis)? (1) Compare the cost of one fountain pen under the simple costing system and under the ABC system. If the company continues to use the simple costing system, is the product under- or overcosted, and by how much (on a per unit basis)