Tomco is a producer of small engine parts. They currently allocate $2,000,000 of overhead using direct labor hours as the base. They are thinking of using an activity based costing system to allocate the overhead. Under ABC, there will be four activities and four drivers as follows: Activity Set-Up Inspection Shipping Other Driver # of set-ups Inspection Hours Shipments Out Direct Labor Hours TOTAL Overhead Pool $700,000 $400,000 $400,000 $500,000 $2,000,000 Data relating to the companies three products is as follows: Product #3 14 # of Set-ups Inspection Hours Shipments Out DLH Product #1 7 12 2 50,000 Product #2 14 42 3 25,000 26 5 25,000 Required: 1) Allocate Overhead to the three products using the current system. 2) Allocate Overhead to the three products using the ABC system. 3) Which is generally a better method of cost assignment and why? 4) Which product managers will support ABC and which ones will oppose it? Why