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uestion 2 Waymire Ltd. manufactures two products and currently allocates overhead based on direct labour hours. For the coming year, the company is considering changing

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uestion 2 Waymire Ltd. manufactures two products and currently allocates overhead based on direct labour hours. For the coming year, the company is considering changing to an activity based costing system by allocating overhead ot yet swered based on 3 activities. The estimated amount of overhead traceable to the 3 activities for the coming year are larked out of given below Activity Cost driver Cost Product I Product2 Flag 505 uestion Purchase #oforders $807319272 orders Maintenance Machine $492603 15992 15572 hours Inspection #of $713267 1766 2063 inspections Total estimated direct labour hours for the coming year are 27378 hours for Product 1 and 86690 hours for Product 2 What is the difference between total overhead allocated to Product 2 using activity based costing versus traditional costing? Note: a negative number indicates less total overhead allocated using activity based costing. Select one O a. $-861163 O b. $-377968 Oc. $377968 d. $-668831

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