Question Completion Status: QUESTION 13 The following overhead cost information is available for the Hobson Corporation, a manufacture of computer monitors Activity Allocation Base Overhead Cost Purchasing Number of purchase orders $ 400 000 Receiving Number of shipments of material 100 000 Machine setups Number of setups 300 000 Assembly Direct labour hours 125 000 Quality control Number of inspections 75 000 . During the year, 1000 purchase orders were issued: 300 shipments of material were received: 600 setup occurred and 750 inspections were conducted The corporate managers are trying to decide whether they should use a traditional overhead allocation method based on direct labour assembly ours, or wth to an activity-based costing system. Assume that a batch of 200 monitors has resulted in the following cost activity Purchase orders Shipments of material received Machine setups Direct labour assembly hours Inspections 7 12 2 50 3 Required (a) Determine the overhead allocation for the batch of 200 monitors under the traditional overhead allocation based on direct labour hours. (10 Marks (b) Determine the overhead allocation for the batch under activity based costing (10 Marks) (0) Explain which costing method is better for the company is Marks) For the toolbar, press ALTF10 (PC) O ALTFNF10 (MAC). Click Save and Submit to save and submit Clio