Use the 7-Step Cost Assignment Process to calculate total manufacturing costs under: Traditional (volume-based) costing system Activity-Based costing system (start with Step 3) What are the primary differences between the two methods? In this instance, which methods do you think more fairly allocates overhead costs? Explain. (minimum 2-3 sentences) Crazy Skates manufactures and sells three types of skates: Basic Roller, Beginner Inline, and Professional Inline. Based on budgetary projections, the information listed below is available:

Basic 200 Beg. Inline 350 Pro Inline 150 Projected sales in units PER UNIT DATA: Selling price Direct materials Direct labor Direct labor hours Machine hours Inspections $20.00 $2.50 $1.80 0.15 1.20 4 $35.00 $4.00 $4.20 0.35 2.00 7 $50.00 $7.50 $9.00 0.75 2.20 5 Total overhead costs and activity levels for the year are estimated as follows: Overhead costs Activity Direct labor Machine hours Inspections $6,800.00 $3,400.00 $10,200.00 Activity levels 265 labor hours 1,270 mach hours 16 inspections