QUESTION 3 (20 MARKS) REQUIRED Use the information provided below to answer the following questions: 3.1 Tabulate the differences between ABC and traditional costing with regard to the following: Allocation of overheads Absorption of overheads Cost drivers. (6 marks) 3.2 Calculate the single overhead rate for the entire plant using machine hours as the basis for allocation. (4 marks) 3.3 Calculate the cost centre rates using the ABC system. (10 marks) INFORMATION Esse Manufacturers manufactures five products. The budgeted costs and estimated operating information are as follows: Budgeted costs: R Materials handling 90 000 Materials procurement 10 500 Production 150 000 Machine set-ups 60 000 Inspections 45 000 Operating information: Purchase orders 300 Machine hours 12 000 Material usage (kg) 60 000 Machine set-ups 240 Inspections 360