Sweet Cakes uses a traditional costing system and estimates $750,000 for overhead and 15,000 direct labour hours (the allocation base) for the upcoming fiscal year. The company makes custom-designed cakes and desserts. They are considering using activity- based costing (ABC) to apply overhead using the following cost pools and rates: Activity Cost Pool Activity Measure Number of orders Design hours Order processing Design Machine setups Number of setups Manufacturing support Direct labour hours Activity Rate $25 per order $50 per design hour $20 per setup $30 per direct labour hour A customer recently placed one order for two custom cakes. The order requires the following total material and labour Direct Material $150 Direct Labour 10 hours @ $17/hr This order also requires four design hours and two machine setups. Required: 1. Compute the predetermined overhead rate using the traditional method (2 marks) 2. Determine the total cost for the new customer order using the traditional method. (2.5 marks) 3. Determine the total cost for the new customer order using the activity-based costing approach (4.5 marks). + Describe a transaction driver identity one activity cost pool from the list above that uses a transaction driver for its activity measure (2 marks)