Currently Manifestations Industries is considering changing to an Activity Based Costing System due to increased sales, increased number of products, and a more complex manufacturing process with many activities. Manifestations Industries has the following overhead costs and cost drivers. Compute the overhead rate for each cost pool: Activity Cost Pools Cost Driver Est. Overhead Cost Driver Activity (b) Ordering and Receiving Orders $150,000 500 orders Machine Setup Setups $315,000 450 setups Machining Machine hours $2,000,000 125,000 MH Assembly Parts $1,400,000 2,000,000 parts Inspection Inspections $600,000 500 inspections Quethead Rare (a/b) $4,465,000 Direct Labor Hours Traditional Cost Pool 44,650 DL Hours + Activity Cost Pool Ordering and Receiving Machine Setup Machining Assembly Inspection Product A Activity 300 Orders 225 Setups 100,000 Machine hours 1,500,000 Parts 325 Inspections Product B Activity 150 Orders 200 Setups 75,000 Machine hours 750,000 Parts 100 Inspections Product C Activity 50 Orders 25 Setups 50,000 Machine hours 250,000 Parts 75 Inspections Traditional Cost Pool 27,500 DL Hours 12,150 DL Hours 5,000 DL Hours Compute the total overhead costs assigned to Product A using activity based costing: Total Overhead Costs (a xb) Activity Based Costing Product A Activity Overhead Rate (a) (b) Ordering and Receiving Machine Setup Machining Assembly Inspection Using ABC costing, Total Overhead Costs assigned to Product A Compute the total overhead costs assigned to Product A using traditional costing: Traditional Costing Overhead Rate Total Overhead Costs Product A Activity (a) (b) (axb) Traditional Cost Pool Compute and compare overhead: Current Traditional OH Proposed ABC OH Increase/Decrease Product A OH Costs 2. Instructions for Posting (200 to 300 words - 60pts): a. Based on the results for Product A Overhead for Traditional Costing and the proposed ABC Costing: 1-Would you recommend to change from Traditional Costing to ABC Costing 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 advantages in using ABC Costing in comparison to Traditional Costing. c. Explain and compare Unit Level Activities to Batch Level Activities. Provide two examples for Unit Level Activities and two examples for Batch Level Activities. * Upload and attach your completed excel file to your posting