I need to write a one page memo recommending a cost approach, I need to choose the best option between ABC costing approach and traditional costing and explain why? See attached picture

http://www.google-@ MedtronK Secured. D captive Portal G Google salesforce.com-U.n... G Before making a recommendation to management you decide to evaluate the impact acivity Training. ase will have product costing. You identified the following activities, cost drivers and estimated costs for the year 3 Cost Driver Estimated Annual Estimated Annual Activity Cost Driver Units 20,000 Machine Hours 150,000 Equipment Depreciation and Maintenance 40,000 16,000 Materials used 400 Processing Number of Orders 110,000 Packing and Shipping Production SetupNumber of 75,000 250 800 Number of Units Shipped 70,000 Production Runs Quality ManagementNumber of 110,000 Inspections You also estimated 10,000 labor hours would be needed to fill the orders in the upcoming year. Assume the following activities occurred in February of year 3: Ranch Heinz 4,000 $9,000 2000 $5,000 2000 # of units produced Direct Materials 200 12 10 600 240 Direct Labor Hours 320 # of production runs | 4 Number of orders 20 Pounds of Material 800 used Machine Hours # of inspections 20 Units Shipped4,0002,000 Direct labor costs are $25 per hour 16 600 600 20 600 20 2,000 800 $8,000 $6,000 $5,000 Required: Compute the overhead allocation rate for each of the cost drivers using ABC costing approach. Compute the production costs for each product for February using the cost drivers disclosed. Complete the same analysis except using traditional costing- use direct labor hours for the allocation rate. Once you have completed all of your review, prepare a report for management explaining your findings and recommending a costing approach. to cite all sources. 1) 2) 3) Your memo should be at least one page, using APA format. Remember