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

$\backslash$table$[[,,,],[$Activity Pool $($Driver$),$Cost of Pool,Usage by$,$Usage by$],[$Product A$,$Product B$,,],[$Design $($engineering hours$),$$$300,000,200,300],[$Production $($direct labor hours$),500,000,100,000,300,000],[$Inspection $($batches$),200,000,300,100]]$

Carter manufactures $10,000$ units of Product A and $7,500$ units of Product B per month.

Required:

a$.$ Calculate the predetermined overhead rate under the traditional costing system.

b$.$ Calculate the activity rate for Design.

c$.$ Calculate the activity rate for Machining.

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.

f$.$ Calculate the indirect manufacturing costs assigned to each unit of Product B under the traditional costing system.

g$.$ Calculate the indirect manufacturing costs assigned to each unit of Product A under the ABC system.

h$.$ Calculate the indirect manufacturing costs assigned to each unit of Product B under the ABC system.

i$.$ Which product is undercosted and which is overcosted under the volume$-$based cost system compared to ABC $?$

Complete this question by entering your answers in the tabs below.

Required $A$ Required $C$

Required D

Required $E$

Required $F$

Required G

Required $H$

Required I

Calculate the predetermined overhead rate under the traditional costing system.

Note: Round your answer to $2$ decimal places.

Predetermined Overhead Rate