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b) Electric Car Co (ECC). currently manufactures two differenttypes of fully electronic cars in 2021. Type 8Y is a large SUVwhereas Type 8W will be the fastest car in the world with 10 rocketthrusters. ECC has decided to use ABC costing instead oftraditional costing. The 2021 budget to manufacture these new typesinclude manufacturing overhead of $126,920,760 which has beenallocated on each product’s inspection hours. The expected primecosts of two new types are as follows: Type 8Y Type 8W Prime Costs$20,915 $43,625 ECC’s controller believes the traditional costingsystem may be providing misleading cost information. They havedeveloped an analysis of the 2021 budgeted manufacturing-overheadcosts shown in the following chart. Activity Cost Driver BudgetedActivity Budgeted Cost Assembly Assembly hours 10,000 $63,460,000Inspection Inspection hours 10,000 $27,920,000 Painting Gallons ofpaint 5,000 $22,850,000 Quality control Number of tests 8,000$12,690,760 Total manufacturing-overhead cost $126,920,760 Actualdata regarding the 2021 manufacturing of the Type 8Y and the Type8W is shown in the following table with a total MOH of$216,920,760: Type 8Y Type 8W Budgeted Sales (units) 2,222 555Assembly hours 767 2,955 Inspection hours 767 2,955 Paint Gallons383 1477 Tests 612 2364 Required: 1) Using the traditional methodi. Determine the company’s predetermined overhead rate(s) appliedii. Determine how much overhead was applied to Type 8Y iii. Providethe MOH true up journal entry required for this method at the endof the year 2) Using the ABC method i. Determine the company’spredetermined overhead rate(s) applied ii. Determine how muchoverhead was applied to Type 8Y iii. Provide the MOH true upjournal entry required for this method at the end of the year