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 Inspections Material handling Set-ups Product testing Budgeted Allocation manufacturing base overhead costs $10,000,000 Winspections $5,000,000 moves $3,000,000 #set-ups $3,000,000 #tests 100 inspections 500 moves 25 set up 15 tests Job #007 Apollo - used 7 inspections. 50 moves, 5 set ups, 3 tests and 100,000 direct labour hours Job # 510 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 w007 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. (4 marks) 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 4