Problem 3 (Textbook Reference: P4-4)-Activity-based costing versus traditional costing watches. Overhead costs are currently allocated using direct- based on the following C& W Corporation manufactures travel clocks and labor hours, but the controller has recommended using an activity-based costing system data: Activity Level Cost $ 100,000 $ 30,000 Travel Clocks Watches Cost Driver Setups Activity Production setup Material handling and requisition Packaging and shipping Total overhead 30 36 80,000 120,000 20 24 Parts Units shipped S 60.000 Required (Traditional Method): 1. Using the traditional cost assignment method, calculate the plant-wide overhead rate using labor-hours as the allocation base. Assume labor-hours required to assemble each unit are 0.s hours per travel clock and 1.0 hour per watch, and that 80,000 travel clocks and 120,000 watches were produced Plant-wide overhead rate: s1 per direct labor hour 2. Under the traditional cost assignment method using the plant-wide overhead rate, how much fotal overhead cost is allocated to the Travel clocks: $ * 0 $ 1,1 Watches:ST Problem 3 is continued on the next page* - 1,14 Fall 2018- Due Thursday, September 27 Required (ABC Method): 3. Using the Activity-based Costing (ABC) assignment method, calculate the activity cost rates for the following activities: (a) Setup costs:S (b) Materials handling costs: $ (c) Packaging and shipping costs: S Using the Activity-based Costing (ABC) assignment method how much total overhead cost is allocated to per production run _per part per shipment 4. the: Travel clocks: S Watches: S