Question $4(15$ Marks$)$Speed Demon Inc. manufactures two products: speedometers and odometers. During the month, it produced $2,000$ speedometers and $3,000$ odometers and incurred estimated overhead costs of $$45,300.$ The company currently allocated overhead based on direct labor hours. This month, the company incurred the following:$$ Speedometers$$ OdometersMachine Hours$7501,000$Labour Hours$1,200800$Labor cost$$12,00018,000$Management is considering implementing activity$-$based costing. An analysis of estimated overhead costs revealed the following activities:$$ Activity$$ Total Cost$$ Activity Measure$$ Use of Activity Measure by Product Line$$ Speedometers$$ OdometersMaterials Handling$$18,000$# of requisitions$400600$Machine Set$-$ups$12,600$# of set$-$ups$150300$Quality Inspections$14,700$# of inspections$200400$Required $(3$ marks each $1$ mark for answer and $2$ marks for supporting calculations$)$a$)$ What is the company's current predetermined overhead rate?$$45,300/1200+800$$$45,300/2000$$$22\mathrm{.}65$ b$)$ Assuming a current predetermined overhead rate of $$10\mathrm{.}00,$ what is the total overhead allocated to speedometers using the current costing system?c$)$ What is the allocation rate for Materials Handling using Activity Based Costing?d$)$ What is the allocation rate for Machine Set$-$ups using Activity Based Costing?e$)$ Assuming an allocation rate of $$20$ per requisition for the Materials Handling Activity, what is the total overhead allocated to speedometers?