Question 1 (20 marks) Describe how the application of Activity-Based Costing to service companies is the same as its application to manufacturing companies. Question 2 (20 marks) ABC Airlines is a cargo air freight company and plans to add two new routes: Victoria to Los Angeles (Route 105) and Calgary to San Francisco (Route 106). The company is setting its rate charges for the two routes and expects to have: Instructions Under a traditional accounting system to allocate overhead using container loads as the base: A. Determine the amount of overhead that will be assigned to Route 105. B. Determine the amount of overhead that will be assigned to Route 106. If the company switches to an ABC accounting system, then use the regulatory forms and hours to load containers to allocate overhead costs. C. Determine the amount of overhead that will be assigned to Route 105. D. Determine the amount of overhead that will be assigned to Route 106