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3. Sugar Fix Bakery manufactures and sells three flavors of giant custom cookie cakes: Chocolate Chip, Brownie, and Peanut Butter. The cookie cakes are baked in batch size of 10 due to the size of the ovens, Based on budgetary projections, the information listed below is available: Chocolate Chip Brownie Peanut Butter Projected sales in unit 1,500 1,800 1,400 PER UNIT data: Selling price $50.00 $60.00 $50.00 Direct materials $9.00 $11.00 $8.00 Direct labor $5.00 $5.50 $5.25 100 1.00 0.50 HOURS per 10-unit batch: Direct labor hours 1.00 2,00 Over hours 1.00 1.00 Packaging hours 0.50 0.50 Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Direct labor 650 hours Oven $58,750 470 oven hours Packaging $32.900 235 packaging hours $91.650 Required: a. Determine the activity-cost-driver rate for oven and packaging costs (4 points) b. Using the ABC system, for the Brownie cookie cake, compute. i the estimated overhead costs per thousand cookies (3 points) in the estimated operating profit per thousand cookies (3 points) c. Using a traditional system (with direct labor hours as the overhead allocation base), for the Brownie cookie cake, compute: 1. the estimated overhead costs per thousand cookies (3 points) 11. the estimated operating profit per thousand cookies. (3 points) d. Explain the difference between the profits obtained from the traditional system and the ABC system. Which system provides a better estimate of profitability? Why? (4 points)