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 yedr 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 Allocation base Budgeted manufacturing overhead costs Estimated volume of allocation base Inspections Material handling 510,000,000 #inspections, $5,000,000 #moves $3,000,000 set-ups $3,000,000 I tests 100 inspections 500 moves 25 set up 15 test Set-ups Product testing Job 8007 Apollo - used inspections. 50 moves, 5 set ups, 3 tests and 100,000 direct labour hours Job # 510 Mars - used inspections. 35 moves, 2 setups, 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 marka) 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 alocated to job 007 Apollo (4 marks) Using activity based costing compute the manufacturing overhead costs that will be allocated to Job #510 Mrs. (4 marks) ENTER YOUR ANSWER IN THE WHITE SPACE BELOW SHOW ALL YOUR CALCULATIONS IN ORDER TO RECEIVE PART MARKS 4