Grey Inc. manufacturers two products (Wans and Rans). For many years, the company has used a simply costing system to allocate overhead costs to its product lines based on direct labour hours. For 2021, the company gathered the following budgeted information: Units produced and sold Direct labour hours used Direct labour cost Wans 168,750 337,500 3,375,000 Rans 337,500 1,012,500 15,187,500 Direct materials cost $405 per unit of the Wans and $472 per unit of the Rans, and total manufacturing overhead for 2021 was budgeted to be $38,812,500. Required (A) Using the existing (simple) costing system in which manufacturing overhead costs are allocated on the basis of direct labour hours, compute the following: i. The plantwide overhead allocation rate. ii. The total manufacturing cost for each product line. iii. The manufacturing cost per unit for each product line. (B) A new cost accountant has suggested that the company implement an activity-based costing (ABC) system. After viewing the factory's manufacturing activities and costs, the cost accountant has gathered the following budgeted information: Units produced and sold Direct labour hours used Direct labour cost Number of times handled Number of parts Number of design changes Number of product setups Wans 168,750 337,500 3,375,000 60,000 18,000 3,000 12,000 Rans 337,500 1,012,500 15,187,500 30,000 12,000 1,500 9,000 Additionally, the cost accountant has determined that the manufacturing overhead costs budgeted for 2021 were as follows: Cost pool Handling Number of parts Design changes Setups Activity Costs $10,125,000.00 $8,100,000.00 $11,137,500.00 $9,450,000.00 $38,812,500.00 Using activity-based costing, complete the following: i. Select suitable cost allocation bases for each activity and compute the activity- based costing allocation rates. ii. Compute the total manufacturing cost for each product line. iii. Compute the manufacturing cost per unit for each product line. (C)What evidence exists that there is product diversity and cost distortion in the simple costing system? Please discuss