Calculate the activity rate for Design

Calculate the activity rate for Production

Calculate the activity rate for Inspection

Using the ABC system, calculate indirect manufacturing costs assigned to each unit of Product A

Winnie, Inc. produces two different products, Product A and Product B. Winnie uses a traditional volume-based costing system in which direct labor hours are the allocation base. Winnie is considering switching to an ABC system by splitting its manufacturing overhead cost across three activities: Design, Production, and Inspection. The cost of each activity and usage of the activity drivers are as follows: Usage by Usage by Cost Product A Product B Design (Engineering Hours) $ 428,800 370 270 Production (Direct Labor $ 443,300 307,000 107,000 Hours) Inspection (Batches) $ 307,800 1 70 370 Winnie manufactures 10,700 units of Product A and 8,200 units of Product B per month. Calculate the predetermined overhead rate under the traditional costing system. Numeric Response