I-CAN Company makes three products: Jump, Slow, and Speed. The company presently applies overhead using a predetermined rate based on direct-labour hours. The CFO of the company recommended that I-CAN switch to activity-based costing (ABC) and identified the following activities, cost drivers, estimated costs, and estimated cost-driver units for 2023 for each activity center. Table 1: In addition, management estimated 11,000 direct-labour hours (DLH) for 2023. Assume that the following activities occurred in February of 2023: Table 2: A. (1) Compute a predetermined overhead rate for 2023 for each cost driver recommended by the CFO. (2) Also compute a predetermined overhead rate using direct-labour hours as the allocation base. (11 points) B. Compute the production costs for each product for February using direct-labour hours as the allocation base and the predetermined rate computed in requirement (a.2). (15 points) C. Compute the production costs for each product for February using the cost drivers recommended by the CFO and the predetermined rates computed in requirement (a.1). (Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labour-hour-based allocation.) (15 points) D. Management has seen your numbers and wants to know how you account for the discrepancy between the product costs using direct-labour hours as the allocation base and the product costs using activity-based costing. Write a brief response to management. (4 points) I-CAN Company makes three products: Jump, Slow, and Speed. The company presently applies overhead using a predetermined rate based on direct-labour hours. The CFO of the company recommended that I-CAN switch to activity-based costing (ABC) and identified the following activities, cost drivers, estimated costs, and estimated cost-driver units for 2023 for each activity center. Table 1: In addition, management estimated 11,000 direct-labour hours (DLH) for 2023. Assume that the following activities occurred in February of 2023: Table 2: A. (1) Compute a predetermined overhead rate for 2023 for each cost driver recommended by the CFO. (2) Also compute a predetermined overhead rate using direct-labour hours as the allocation base. (11 points) B. Compute the production costs for each product for February using direct-labour hours as the allocation base and the predetermined rate computed in requirement (a.2). (15 points) C. Compute the production costs for each product for February using the cost drivers recommended by the CFO and the predetermined rates computed in requirement (a.1). (Note: Do not assume that total overhead applied to products in February will be the same for activity-based costing as it was for the labour-hour-based allocation.) (15 points) D. Management has seen your numbers and wants to know how you account for the discrepancy between the product costs using direct-labour hours as the allocation base and the product costs using activity-based costing. Write a brief response to management. (4 points)