Carter, Inc. produces two different 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 across three activities: Design, Production, and Inspection. The cost of each activity and usage of the activity drivers are as follows:

	Cost		Usage by Product A	Usage by Product B
Design (Engineering Hours)	$	429,200	320	420
Production (Direct Labor Hours)	$	578,000	112,000	312,000
Inspection (Batches)	$	307,200	420	220

Carter manufactures 11,200 units of Product A and 8,700 units of Product B per month. Required:

a. Calculate the predetermined overhead rate under the traditional costing system. (Round your answer to 2 decimal places.) b. Calculate the activity rate for Design. c. Calculate the activity rate for Machining. (Round your answer to 2 decimal places.) d. Calculate the activity rate for Inspection. e. Calculate the indirect manufacturing costs assigned to each unit of Product A under the traditional costing system. (Round your intermediate calculations to two decimal places. Round your answer to 2 decimal places.) f. Calculate the indirect manufacturing costs assigned to each unit of Product B under the traditional costing system. (Round your intermediate calculations to two decimal places. Round your answer to 2 decimal places.) g. Calculate the indirect manufacturing costs assigned to each unit of Product A under the ABC system. (Do not round intermediate calculations. Round your answer to 2 decimal places.) h. Calculate the indirect manufacturing costs assigned to each unit of Product B under the ABC system. (Do not round intermediate calculations. Round your answer to 2 decimal places.) i. Which product is under-costed and which is over-costed under the volume-based cost system compared to ABC?