Isadores Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data: Cost Driver Volume Activity Cost Driver Cost Pencils Pens Setting up Number of setups $ 96,600 18 28 Inspecting Number of parts 25,600 3 5 Packing and shipping Number of boxes shipped 55,000 40,000 70,000 Total overhead $ 177,200 Required: a. Compute the amount of overhead to be allocated to each product under activity-based costing.b. Compute the amount of overhead to be allocated to each product using labor-hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.2 for pencils and 0.2 for pens and that 40,000 boxes of pencils and 70,000 boxes of pens were produced during the period.