Referencing Styles : Harvard 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.