Simba Corporation produces two subassemblies, JR-14 and RM-13, used in manufacturing tracks. The corporation is currently using an absorption costing system that applies overhead based on direct-labor hours. The budget for the current year ending December 31, 2017, is as follows: Barb Weyer, Simba's president, has been reading about a product costing method called activity-based costing. Weyer is convinced that activity-based costing will cast a new light on future profit. As a result, Matthew Lincoln, Simba's director of cost management, has accumulated cost pool information for this year shown on the following chart. This information is based on a product mix of 5,000 units of JR-14 and 5,000 units of RM-13. Cost Pool Information for 2017 In addition, the following information it protected for the next calendar year, 2018 On January 1, 2018, Simba Corporation is planning to increase the prices of JR-14 to $355 and RM-13 to $455. Material costs are not expected to increase in 2018, but directlabor will increase by 8 percent, and all manufacturing overhead costs will increase by 6percent. Due to the nature of the manufacturing process, the company does not have anybeginning or ending work-in-process inventories. Simba Corporation uses a just-in-time inventory system and has materials delivered to the production facility directly from the vendors. The raw-material inventory at both thebeginning and the end-of-the-month is immaterial and can be ignored for the purposes ofa budgeted income statement. The company uses the first-in, first-out (FIFO) inventorymethod. Requirements: Using activity-based costing, calculated the following: a. Total cost for the following activity cost pools: machining, assembly, material handling, and inspection. (Round to the nearest dollar) b. the pool rate unit of the appropriate cost driver for each of the four activities. Prepare a schedule showing the Gross Product Margin for Simba Corporation for 2018, using activity-based costing. The statement should include each product and a total for the company. Be sure to include detailed calculation for the cost of goods manufactured and sold. (Round each amount to the nearest dollar) Prepare a budgeted schedule showing the Gross Product Margin for Simba Corporation for 2018, using activity-based costing. The statement should include each product and total for the company. Be sure to include detailed calculation for the cost of goods manufactured and sold. (Round each amount to the nearest dollar) Briefly explain to top management the difference between activity-based costing and traditional product-costing methods. Which method do you recommended for Simba Corporation? Why