Fog Lifter Coffee Roasting Company of Benicia, California roasts two unique blends of coffee beans: Fog Lifter and Midnight Oil. These unique blends are sold and shipped exclusively to CPA firms and Law firms across the country and most of Canada. Fog Lifter Midnight Oil Signature Blend Tax Season Blend Total CostRoasting Machine Setups 750 200 $48,000Roasting Inspections 200 50 $ 9,000 Labor hours 3,600 800The company is considering switching from one overhead rate based on labor hours to activity-based costing. InstructionsPerform the following analyses for these two components of overhead:

1. Compute total roasting machine setups and roasting inspection costs assigned to each product, using a single overhead rate.

2. Compute total machine setups and inspection costs assigned to each product, using activity-based costing.

3. Comment on your findings.