show all workings please.

Reader Inc. has two types of handbags; classic and modern. The controller has decided to use a plant-wise overhead rate based on direct labour costs. The president has heard of activity- based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed; machining and machine set-up. Presented below is the information related to the company's operations. $ Direct labour cost Machine hours Set-up hours Classic 140,000 1,500 300 Modern $360,000 3,500 1,200 Total estimated overhead costs are $900,000. The overhead cost allocated to the machining activity cost pool is $598,500 and $301,500 is allocated to the machine set-up activity cost pool. Required: a) Calculate the overhead rate using the traditional (plant-wide) approach b) Calculate the activity rates using the activity-based costing approach c) Determine the difference in allocated overheads to each of the products using the traditional approach and activity-based costing approach d) Which product has been undercosted using the traditional approach? What is the impact to the company of undercosting a product