Sicilian Pupi Company manufactures two types of marionettes: wooden and plastic ones. The overhead costs have been divided into four cost pools that use the following activity drivers: Product Number of orders Number of set- ups Number of Labour hours Wooden 60 20 labour transactions 50 2,000 Marionettes Plastic 20 80 70 500 Marionettes Cost per pool 16,000 13,000 2,400 20,000 Requirement a) Compute the overhead allocation rate for each of the proposed activity drivers. 8 Marks b) Compute the overhead costs that would be allocated to Wooden Marionettes and Plastic Marionettes if Sicilian Pupi Company decided to adopt an activity-based costing system. 8 Marks c) Compute the overhead allocation rate that Sicilian Pupi Company would use if they decided to adopt a traditional costing system based on labour hours. 3 Marks d) What would be the share of overhead costs allocated to Wooden Marionettes and Plastic Marionettes using the traditional costing system and the information calculated in part (c)? 6 Marks e) Which method, activity-based costing or traditional costing, produces the most accurate cost assignment? Briefly discuss your reasons. 5 Marks