Severt-Houser-Mills is the producer of two qualities tour bus sont covers, (1) comfy and (2) plush During May, the company experienced above normal production Specifically, 800 comly seat covers were produced, and 400 plush seat covers were produced. The overhead cost is estimated to be $268,500 A breakdown of the overhead costs reveals the following activities: ACTIVITIES COST DRIVERS TOTAL COST 1. Materials handling Number of requisitions $ 105,000 2 Equipment setup Number of setups 82,500 3. Inspections Number of inspections 81.000 TOTAL $ 268,500 The cost analysts determined the following cost driver volumes for each product as follows: COST DRIVERS COMFY PLUSH Number of requisitions 350 700 Number of setups 300 600 Number of inspections 500 250 TOTAL 1,050 900 750 INSTRUCTIONS: 1. Compute the overhead rate for each activity 2. Determine the amount of overhead costs that should be assigned to each product, 3. Assume instead of ABC, the traditional method of overhead assignment uses direct labor costs to assign overhead. Total direct labor hours is approximately 2,100 hours where comfy used 700 hours and plush used 1,400 labor hours. Determine the amount of overhead cost that would be assigned to each of the two products 4. Compare and evaluate your answer in #2 with your answer in #3. Is one answer a more equitable assignment or accurate assignment than the other? Explain in detail