Please show your calculation for part $2)$ only

Modern 1001s makes two types of chain sawsHigh Grade and Professional. Data concerning these two product lines appear below: Selling price per unit Direct materials per unjt Direct labour per unit Direct labour-hours er unit Estimated annual production and sales High Grade $215.50 $ 83.50 $ 30.00 1.0 DLHs 75,000 units Professional $387.00 S212.oo s 45.00 1.5 DLHs 25,000 units The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labour-hours. Data concerning manufacturing overhead and direct labour-hours for the upcoming year appear below: Estimated total manufacturing overhead Estimated total direct labour-hours Required: 112,500 Dl-Hs l. Using @Exhibit 7-14 as a guide, compute the product margins for the High Grade and the Professional products under the company's traditional costing system. 2. The company is considering replacing its traditional costing system with an ABC system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs): l. Using @Exhibit 7-14 as a guide. compute the product margins for the Iligh Grade and the Professional products under the company's traditional costing system. 2. Jhe company is considering replacing its traditional costing system with an ABC system that would assign its manufacturing overhead to the following lour activity cost pools (the Other cost pool includes Organization-sustaining costs and idle capacity costs): Expected Activity Activities and Activity Measures Supportmg direct labour (direct labour-hours) Batch setups (setups) Product-sustaining (number of products) Other Total manufacturing overhead cost Estimated Overhead Cost s 573,750 621.250 110.000 45,000 High Grade 75,000 75 37.500 112.500 350 Using@Exhibit 7-12 as a guide. compute the product margins for the Iligh Grade and Professional products under the ABC system. 3. Explain why and how the traditional and activity-based cost assignments differ. Sales Direct materials Direct labour Supporting direct labour Batch setups Product sustaining Total cost Product margin Number of units produced and sold 382,500 133,125 55,QLQ 75,000 S94.39 S2&.QLQ 191,232 488, 125 25,QUU Sl 00.63 11 3,375,000 573,750 621,250 110,000