Rusted from the Rain, Inc. is a producer of specialized anti-rust automotive equipment Currently, overhead costs are allocated at a rate of $45 per machine hour produced and the company used 2,000 machine hours last year. Rusted's CEO, William Talent, 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: Amount Cost Driver Setups $40,000 Number of setups 25,000 Number of machine Equipment hours Inspection 55,000 Number of inspections The company estimates that it will perform 175 setups and 2,000 inspections each year and will use 2,200 machine hours. Job CRT will require 20 setups, 95 machine hours, and 75 inspections. Required: a. Calculate the activity rates to be used under ABC costing. (3 marks) b. Using ABC, what amount of manufacturing overhead will be allocated to Job CRT? (4 marks) c. What amount would be allocated to job CRT using their current traditional system? (1 mark) d. Explain why and how the two overhead allocation methods yield such different answers. (2 marks)