QUESTION 3 (30 marks) Patriots Suck Inc. manufactures a line of high-end exercse equipment of commercial quality. Assume that the controller has proposed change from a traditional costing system to an activity based costing system, The Vice President, Finance is not convinced so she requests that the next large order for equipment be costed under both systems to compare and analyze. The company receives an order from Slim-Way Salon Inc. for 150 low-impact treadmills, which the controller identifies as the order to use for dual costing The following cost data relate to the Slim-Way order Data relevant to both costing systems Direct Materials Direct Labour Hours Direct Labour rate per hour $55,500 820 $18.00 Data relevant to the traditional costing system: The predetermined overhead rate is 300% of direct labour cost. Expected Use Activity Cost Pools Cost Drivers Activity-Based Overhead Rate of Cost Drivers for the Order Engineering Design Engineering Hours Machine Set-Up Set-Ups Machining Assembly 330 $30 per hour $200 per hour $25 per hour 732 1,500 152 732 Machine Hours # of sub assemblies 8 per r sub assembly Packing/Shipping Packing/Shipping hours$15 per hour Building Occupancy Machine Hours $6 per hour Required: Calculate the total cost of the Slim-Way Salons Inc., order under: a) Traditional costing system (10 marks) b) Activity Based costing System.(10 marks) c) As a result of this.comparison, which costing system is Patriots Suck Inc. likely to adopt? Why? (10 marks)