Pluto Inc. manufactures drones. The company currently uses a plantwide overhead rate (traditional method) based on direct labour hours to allocate manufacturing overhead (MOH) to individual jobs. It estimates to incur 1,000,000 direct labour hours this year and $21,000,000 of manufacturing costs. However, the owner and CEO is considering using activity-based costing to allocate manufacturing overhead. She has identified four activities that incur or drive manufacturing costs: inspections, material Handling, set-ups and product testing. The budgeted activity costs for the upcoming year and the allocation bases are as follows: Activity Estimated volume of allocation base Budgeted Allocation manufacturing base overhead costs $10,000,000 #inspections $5,000,000 #moves $3,000,000 #set-ups $3,000,000 tests Inspections Material Handling Set-ups Product testing 100 inspections 500 moves 25 set ups 15 tests Job #007 Apollo - used 7 inspections, 50 moves, 5 set ups 3 tests and 100,000 direct labour hours Job # 610 Mars - used 9 inspections, 35 moves, 2 set ups, 5 tests and 150,000 direct labour hours Required: 1. Using the traditional method of cost allocation determine the manufacturing overhead that will be allocated to Job #007 and Job #510 Mars. (6 marks) 2 Using activity based costing compute the activity rate for each activity (4 marks) 3. Using activity based costing compute the manufacturing overhead costs that will be allocated to Job #007 Apollo (a marks) 4. Using activity based costing compute the manufacturing overhead costs that will be allocated to Job #510 Mars. (4 marks) ENTER YOUR ANSWER IN THE WHITE SPACE BELOW SHOW ALL YOUR CALCULATIONS IN ORDER TO RECEIVE PART MARKS