please answer in detail, im trying to learn for an exam. thank you!The Mackinaw Chocolate Company uses ABC. The controller identified two activities and their

budgeted costs:

Setting up equipment $ 76,300 Other overhead 175,000

Setting up equipment is based on setup hours, and other overhead is based on oven hours.

Mackinaw produces two products: fudge and cookies. Information on each product is as follows:

Units produced Setup hours Oven hours

Fudge

2,500 1,000 250

Cookies

12,500 250 1,250

Required:

Round answers to four decimal places.

1. Calculate the activity rate for:

a. setting up equipment

b. other overhead

How much total overhead is assigned to fudge using ABC?

What is the unit overhead assigned to fudge using ABC?

Now, ignoring the ABC results, calculate the plantwide overhead rate, based on oven hours.

How much total overhead is assigned to fudge using the plantwide overhead rate?

Explain why the total overhead assigned to fudge is different under the ABC system (i.e., using

the activity rates) than under the traditional system (i.e., using the plantwide rate).