Q1. Petral Ltd. Manufactures 2 products, W and 2 using the same factory and facilities. Details provided below: Product line Vol of Material Direct labour Machine time Labour cost production (direct) cost per unit per unit per unit per unit 600 $6 0.75 hour 0.5 hour I 7100 $18 1.25 hours 1.75 hours Production overhead is com rised of the followin costs: Description of cost Factory overhead related to machine activity Set-up costs Cost of handling materials Administration costs for spare parts The rm uses a plant-wide overhead rate based on Machine hours of $5.97 per machine hour. However, an investigation of the activities (in addition to machine hours) that drive costs at the product-line level revealed the following relationships: Product line No. of sat-ups No. of times No. of spare material was parts handled Required: 1) Verify the fin'n's plant-wide rate of $5.97 per machine hour. Show all relevant calculations. (2 marks) 2) Compute all appropriate overhead rates using activity based costing. Round off all individual overhead rates to two decimal places. Show all relevant calculations. (2.8 marks) 3) Apply (1) and (2) to 2 product lines: that is, calculate the amount of overhead that should be allocated to Product-lines W and Z under the plant-wide rate and ABC rates. Show all relevant calculations. (4.8 marks) 4) Compare the overhead allocations to product lines W and 2. Clearly explain the differences in allocated costs with respect to each product line: your explanation should rst provide a theoretical explanation for the differences, and second, explain these differences by refening back to the case facts provided. This part requires a narration that explains any figures calculated to highlight differences in allocated amounts: students cannot just provide calculations without providing a detailed explanation. The marking criteria listed in the rubric provided