Required:1 Calculate the material handling rate that would have been used by Eloise Smith's predecessor at East Coast Marine.2 Calculate the revised material handling costs to be allocated on a per purchase order basis.3 Discuss why purchase orders might be a more reliable cost driver than the dollar amount of direct material.4 Calculate the difference due to the change to the new method of allocating material handling costs to government contracts.5 Prepare a forecast of the cumulative dollar impact over a three-year period (based on the coming year plus 2 more years) of Eloise Smith's recommended change for allocating Material Handling Department costs to the Government Contracts Unit. Round all calculations to the nearest whole number.6 Referring to the standards of ethical conduct for accountants described in Chapter 1:(a) Discuss why Eloise Smith has an ethical conflict.(b) Identify several steps that Smith could take to resolve the ethical conflict.