WoolCorp WoolCorp buys sheep's wool from farmers. The company began operations in January of this year, and is making decisions on product offerings, pricing, and vendors, The company is also examining its method of assigning overhead to products. You've just been hired as a production manager at WoolCorp Currently WoolCorp makes two products: (1) raw, clean wool to be used as stuffing or Insulation and (2) wool yarn for use in the textile Industry The company would like you to evaluate its costing methods for its raw wool and wool yarn Single Plantwide Rate WoolCorp is currently using the single plantwide factory overhead rate method, which uses a predetermined overhead rate based on an estimated allocation base such as direct labor hours or machine hours. The rate is computed as follows: Single Plantwide Factory Overhead Rate (Total Budgeted Factory Overhead) (Total Budgeted Plaritwide Allocation Base) WoolCorp has been using combing machine hours as its allocation base The company would like to consider activity based costing. In order to understand their current system better, you evaluate WoolCorp's current method of costing for raw wool and woolyam. The production staff has compiled the following information for you on the production of 500 pounds of either raw wool or wool yarn Budgeted Factory Factory Overhead Type Overhead Sorting $25,600 Cleaning 38,400 Combine Raw Wool Wool Yarn Hours of cornbing machine se required 50 20 in the folioweng table, we combing machine hours at the allocation base for assigning overhead costs to each product, when required, round your answers to the nearest dollar Single Pantwide Factory Overhead Rate per combing hour Raw Wool Wool Yarn Alocated factory overhead cost Activity based Costing In order to compare WooCorp's current method with activity based costing, you interview the production staff and comple the following information, which relates to the costs for raw wool and woolyam Type of Cost Activity Total Cost Sorting Hours of corting $25,600 Ceaning units of cleaning machine power 30,400 Combing Hours of combing machinese 1,400 Hours of sorting required Units of cleaning Machine power required Heco blagmachine Raw Wool Wool Yarn 100 3,200 1.920 4,480 In the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent. Activity Activity Rate Sorting per sorting hour Cleaning per unit of cleaning machine power Combing per hour of combing machine use In the following table, atlocate the costs of sorting, cleaning, and combing based on the rates of activity consumed by each product's process. When required, round your answers to the nearest dollar. Raw Wool Wool Yarn Sorting cost Cleaning cost Combing cost Total cost Final Question After reviewing your work on the Single Pantwide Rate and Activity Based Costing panels, which of the conting method would you recommend to WoolCorp, and why