Sweetheart Brands packages single-sized servings of sugar and sugar substitute for fast-food restaurants. The activities required to package sugar are fewer and less complex than for the sugar substitute The direct costs of producing the two products are as follows Direct materials Direct labor Sugar $0.02 0.04 Sugar Substitute $ 0.04 0.08 Overhead is currently assigned to the two products based on machine hours. The following information is provided regarding overhead costs Activity Traceable Costs Cost Driver Setup Packing Inspection $ 48,000 266,000 36,000 fiumber of setups Number of machine hours Number of batches Sugar Line 150 23,000 330 Sugar Substitute Line 150 Total 300 47,000 470 70,000 800 Required: $ 350,000 a. Compute the predetermined overhead rate under the current method of overhead cost allocation. How much total overhead cost will be assigned to each product under the current system? b. Compute the three activity rates that would be used in an activity based system How much total overhead cost will be assigned to each product under an ABC system? c. Assuming an ABC system to be more precise, by how much does the company's current costing system over or undercost the products? Complete this question by entering your answers in the tabs below.