Q2. High Anxiety Ltd produces specialized equipment. Currently, overhead costs are allocated at a rate of INR 50 per machine hour produced and the company used 2,000 machine hours last year. High Anxiety's CEO has heard about ABC, and would like to see if it makes any difference in the costs allocated to jobs at the company. The accounting staff has provided the following information about manufacturing overhead: Cost Pool Setups Equipment Inspection Amount (INR) 30,000 20,000 50,000 Cost Driver Number of setups Number of machine hours Number of inspections The company estimates that it will perform 150 setups and 1,000 inspections each year and will use 2,000 machine hours. Job FWS will require 18 setups, 85 machine hours, and 60 inspections. a. Using ABC, what amount of manufacturing overhead will be allocated to Job FWS? b. What amount would High Anxiety Ltd allocate to job FWS using their current, traditional system? Why do the two methods yield such different answers? c. [15 marks]