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. Carteris considering switching to an ABC system by splitting its manufacturing overhead cost across three activities: Design, Productin, and Inspection. The cost of each activity and usage of the activity drivers are as follows Cost $ 442,800 Usage byUsage by Product A Product B 460 360 Design (Engineering Hours) Production (Direct Labor Hours) Inspection (Batches) $666,000 116,000316,000 260 $ 316,800 460 Carter manufactures 11,600 units of Product A and 9,100 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.) Predetermined Overhead Rate 3.30 b. Calculate the activity rate for Design