Part $2$ Short Answer Questions $[12$ points$]$Prompt #$2\mathrm{.}1$You are the CMA of CBC Pencil Inc. and have been asked to estimate the appropriate amount ofoverhead costs for your one product, a #$2$ pencil. Your analysis demonstrates that the overheadallocation rate for a box of $1,000$ pencils using a single$-$rate approach is $$72\mathrm{.}00,$ while theoverhead allocation rate for pencils using an ABC approach is $$72\mathrm{.}03.$If the CEO asks whether you should use a single rate or ABC cost allocation approach, how wouldyou respond? $($HINT: In your response, be sure to indicate which method is likely to be mostaccurate, which method is the least expensive, and which would be the most efficient use of thecompanys resources?