Logan manufactures circuit boards for computers. The company prepared its annual profit plan for 2015. As part of the analysis of individual product profitability, the management accountant estimated the amount of manufacturing overhead allocated to each product line based on the following budgeted information. Currently, Logan uses a plant-wide overhead allocation rate based on machine hours and a normal costing system. The accountant also prepared a table summarizing the projected annual overhead costs by activities and their activity drivers below. (a) Compute (i) the plant-wide overhead rate using machine hours; and (ii) the activity rates using activity-based costing. Would you recommend that Logan use an activity-based costing approach to allocate overhead costs? Why or why not? (a) Given the actual information for 2015 in the table below, calculate the total normal cost of manufacturing Chip B in 2015 using the ABC approach. Describe how the production-related costs are tracked through the accounting system by preparing journal entries to record each type of manufacturing costs for the completed units of Chip B in 2015. (Narrations are not required). Actual direct labour rate is $8 per hour