Question 3 Rocky Mountain Corporation makes two types of hiking boots - Xactive and Pathbreaker. Overheads costs are currently allocated based on direct labourhours. During the year the company produced 2,000 Xactive and 1,500 Pathbreakers. To produce one Xactive takes 0.4 direct labour hour and to produce one Pathbreaker takes 0.1 direct labour hour. The Company has identified other activities that also drive costs and would like to change to an activity-based costing system. The following information has been completed: Required i) Compute the amount of overhead to be allocated to each product using the current method i.e., the traditional costing method ( 5 marks). ii) Compute the amount of overhead to be allocated to each product using the activity-based information in the table (7 marks). iii) State three reasons why product margins for the two costing systems would always differ from each other. ( 3 marks)