The finance manager for Ben Lee Company (BLC) has established the following overhead cost pools and cost drivers: Budgeted Overhead Cost Pool Overhead Cost Driver cost Machine setups $300,000 Number of setups Materials handling 50,000 Units of raw material Budgeted level of Cost Driver 200 setups 50,000 units Quality control inspection 60,000 Number of inspections Machining 120,000 Machine hours (MHs) 1,000 inspections 30,000 MHs $530,000 Order no.1234 has the following production requirements: Machine setups: 20 Raw material: 15,000 units Inspections: 25 900 Machine hours: Required: a. Suppose that BLC were to use a single, predetermined overhead rate based on machine hours (Traditional Costing System). Compute the rate per hour and the total overhead assigned to order no. 1234. (3 marks) b Determine the activity-cost-driver rate for each activity center. (4 marks) C. Compute the total overhead that should be assigned to order no. 1234 by using activity-based costing. (6 marks) d. Compare the overhead applied using traditional costing to ABC costing and comment on the impact on pricing. Which one do you believe to be more accurate? Justify your answer. (2 marks)