XYZ Cc manufactures a variety of products for the local market. The company has been using labour hours to calculate an overhead allocation rate. The total budgeted overhead for the year is N$955 980, the labour hours are estimated at 5 500 hours and machine hours are estimated at 5 000 hours. The newly appointed financial director proposed that the traditional costing system should be changed to an Activity Based Costing (ABC) system. The management accountant provided you with the following information relating to the overheads: N$222 6001 500 quality tests Quality control and testing Material ordering N$192 7801 620 orders Packaging and dispatch N$68 400192 packages Labour related activities N$126 5005 500 labour hours Machine related activities N$176 2005 000 machine hours Total Budgeted overhead N$955 980 REQUIRED MARKS 6.1 Compute an overhead allocation rate, using traditional costing methods, based on: 6.1.1 Labour hours 3 6.1.2 Machine hours 3 6.2. Compute cost driver rates using the principles of activity based costing. 4 TOTAL MARKS 10