Case #2 Sandro Ltd. currently uses a normal job order costing system in its manufacturing facility and allocates overhead to its two product lines, the Basic model and the Deluxe model, using a single plantwide allocation rate based on direct labour hours. For 2021, the company estimates that manufacturing overhead will be $183,200. Additional estimates for each product line for 2021 are as follows: Product Direct labour hours Direct materials Direct labour Basic 1,300 $58,000 $32,500 Deluxe 300 $76,000 $7,500 Required (A) Compute the manufacturing overhead rate. (B) Compute the amount of overhead the company expects to allocate to each product line. (C) Compute the total manufacturing cost for each product line. (D) Recently, the company's cost accountant has considered implementing an activity-based costing system. To help with this decision, the accountant gathered the following information: Quantity of cost driver Activity Manufacturing Cost driver Basic Deluxe overhead Setups Number of setups 8 20 $39,200 Materials handling Number of components 60 120 $144,000 $183,200 Compute the activity-based costing rates for each activity. (E) Compute the manufacturing overhead cost allocated to each product line using activity- based costing. (F) Compute the total manufacturing cost for each product line. (G)Discuss the differences in the costs determined from traditional costing (i.e., simply plantwide overhead rate) and activity-based costing. Which method provides a better estimate of production costs? Why