Compute the overhead rate for sach sest post Activity Cost Pools Cost Driver Overhead Rate Ordering and Receiving Machine Setup Machining Assembly Inspection Orders Setups Machine hours Parts Inspections Est. Overhead (a) $15.000 $216,000 $2,750,000 $1.125,000 $2,000,000 Cost Driver Activity (b) 750 orders 6000 stups 250,000 MH 1,500,000 parts 20.000 inspections Traditional Cost Pool Direct Laber Hours 56,106,000 122.120 DL. Hours Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Product A Activity 425 Orders 3.000 Setups 125,000 Machine hours 900,000 Parts 13,000 inspections 80.500 DL Hours Prodect B Activity 250 Orders 2,000 Setups 85.XI Machine hours 400,000 Parts 5,000 Inspections Product Activity 75 Orders 1.000 Setups 40,000 Machine bours 200.000 Parts 2.000 Inspections Traditional Cost Pool 16,620 DL Hours 25.000 DL Hours Total Overhead Costs (axb) Compute the total overhead costs assigned to Product Busing activity based costing Activity Based Costing Product B Activity Overhead Rate 2 Ordering and Receiving Machine Setup Machining Assembly Inspection Using ABC costing, Total Overhead Costs assigned to Product B Compute the foal overhead costs assigned to Products using traditional costing: Traditional Casting Product B Activity Overhead Rate ( Total Overhead Costs Traditional Cost Pool Proposed ABC OH Compate and compare overhead : Current Traditional OH Increase/Decrease 1'roduct BOH Costs 2. Instructions for Posting (200 to 300 words - 6pts): 1. Based on the results for Product B Overhead for Traditional Costing and the proposed ABC Costing: 1-Would you recommend to change from Traditional Costing to ABC Casting for computing overhead? 2-Provide three reasons (explain advantages or disadvantages) for your decision b. Explain Activity Based Costing and describe three activities for ABC costing Include two limitations in using ABC Costing in comparison to Traditional Costing c. Explain and compare Product Level Activities to Facility Level Activities Provide two examples for Product Level Activities and two examples for Facility Level Activities. Upload and attach your completed excel file to your posting