Clean Paint Pty Ltd manufachires two highquality base paints: an oilbased paint and a Ears]: paint. Both are um and are manufactured in neutral white colour only. lClean Paint Pty Ltd sells the base white paints to anchised retail paint and decorating stores where pigments are added to tint {colour} the paint as the customer desires. The oilbases paint is made with organic solvents {petroleum products) such as mineral spirits or turpentine. The latex paint is made with water; synthetic resin particl are suspended in the water; and dry and harden when exposed to the air. Clean Paint Pty Ltd uses the same processing equipment to produce both paints in different production runs. Between batches, the vats and other processing equipment must be washed and cleaned. After analysing the company's entire operations, Clean Paint Pty Ltd accountants and production have identied activity cost pools and acctnnulated annual budgeted overhead ccets by pool as follows. Overhead Processing (weighing and mixing, grinding, thinning and drying, straining} Packaging (quarts, gallons and S-gallons} Storage and inventory control Washing and cleaning equipment Total annual budgeted overhead '3,2, Following further analysis, activity cost drivers were identied and their expected use by product and activity were scheduled as follows. Expected Use of [When per Product Expected Cost Activity Cost: \"rivets per Pools Cost Drivers Ac ~ Gilh ased late]: Purchasing mm was Law was Processing Gallons 1,000,000 400,000 500,000 a ocessed gallons lled containers Tests Storing Avg. gals. On 13,000 gallons 10,400 1600 hand hatches Clean Paint Ptjjur Ltd has budgeted 400,000 gallons of oilbased paint and 500,000 gallons of latex paint for processing during this year. Instructions 3. Prepare a schedule shch the computations of the activitybased overhead rates and a schedule assigning each actindty's overhead cost pool to each product (5 Marks}. b. Explain the four benets of ABC compare to traditional costing system {5 Marks]. c. Compute the overhead cost per unit for each product {5 Marks)