3. The controller for Mitchell Supply Company has established the following overhead cost pools and cost drivers: Overhead Cost Pool Machine setup Material handling Budgeted Overhead Cost $150,000 52,500 Cost Driver Number of setups Units of raw material Number of inspections Machine hours Quality control inspectiorn Other overhead costs Total 37,500 90,000 330000 Requirements of Order no.610 5 setup 10,000 per unit Budgeted Level For Cost Driver Overhead Cost Pool Machine setup Material handling Quality control Other overhead 100 setups 50,000 units 1,000 inspections 15,000 machine 12 inspection 600 machine hour hours Required: A. Compute the total overhead that should be assigned to order no. 610 by using activity-based costing. Suppose that Mitchell were to use a single, predetermined overhead rate based on machine hours. Compute the rate per hour and the total overhead assigned to order no. 610. Discuss the merits of an activity-based costing system in comparison with a traditional costing system. B. C. 12+3+5 marks)