Vitarex NRG has been using the traditional product costing approach to assign overhead to all of its packaged vitamina The company MUST follow FDA regulations and is also concerned with providing customers safe, sanitary, and beneficial vitamin Consequently, Vitarex NRG engages in high quality control activities. Quality control overhead costs are assigned to products are of 18% of direct labor costs In October, the company's direct labor cost for its Daily Vitamins is $83,000 Management of Vitarex NRG has been requested by it CFO to adopt Activity Based Costing (ABC), Data related to its Daily Vitamins for the month of October follows below Activity Cost Pools Cost Drivers Overhead Rate Drivers Used Inspections of materials received Number of pounds $0.90 per pound 6,000 pounds In-process inspections Number of servings 50.33 per serving 10,000 servings FDA Certification Customer orders $12.00 per order 420 orders INSTRUCTIONS Write a DETAILED memo to the CFO indicates whether ABC is a better method of overhead allocation than the traditional approach for it Daily Vitamins Your memo should also: 1. Indicate the overhead cost to be assigned to the Daily Vitamins product line for the month of October based on the (1) traditional method and (2) ABC. 2. Include ALL rates under both methods. 3. Compare and contract the results of the two methods. Be specific in presenting your comparison. 4. Be sure s-amounts are included in the memo. Show ALL relevant computations. Proper grammar, punctuation, etc., are expected and will be evaluated