7:43 Carter, Incorporated, produces two products, Product A and Product B. Carter uses a traditional volume-based costing system in which direct labor hours are the allocation base. Carter is considering switching to an ABC system by splitting its manufacturing overhead cost of $948,000 across three activities: Design, Production, and Inspection. Under the traditional volume-based costing system, the predetermined overhead rate is $2.37 per direct labor hour. Under the ABC system, the rate for each activity and usage of the cost drivers are as follows: Activity Pool (Driver) Design (engineering hours) Production (direct labor hours) Inspection (batches) Activity Rate $ 600 per hour $ 1.05 per hour $570 per batch Required: a. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system. b. Calculate the indirect manufacturing costs assigned to Product B under the traditional costing system. Required A c. Calculate the indirect manufacturing costs assigned to Product A under the ABC system. d. Calculate the indirect manufacturing costs assigned to Product B under the ABC system. e. Which product is undercosted and which is overcosted under the volume-based costing system compared to ABC? Complete this question by entering your answers in the tabs below. Required B Required C Usage by Product A 200 150,000 300 Required D Required E Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system. Indirect Manufacturing Costs

Carter, Incorporated, produces two products, Product A and Product B. Carter uses a traditional volume based costing asstert ie which direct labor hours are the allocation base. Carter is considering switching to an ABC system by spilting its maruliching oveihead cost of $948,000 across three activities: Design, Production, and inspection. Under the traditonal volume-based casting snte= ite predetermined overhead rate is $2.37 per direct labor hour. Under the ABC system, the rate for each activty and usage of ite sont drivers are as follows: Required: a. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system b. Calculate the indirect manufacturing costs assigned to Product B under the tradtional costing system c. Calculate the indirect manufacturing costs assigned to Product A under the ABC system d. Calculate the indirect manufacturing costs assigned to Product B under the ABC system e. Which product is undercosted and which is overcosted under the volume-based costing system compars to Abc? Complete this question by entering your answers in the tabs below. calculate the indirect manufacturing costs assigned to Product A under the traditional cesting mytem