Harwell, Inc. produces two different products, Product A and Product B. Harwell uses a traditional volume-based costing system in which direct labor hours are the allocation base. Harwell is considering switching to an ABC system by splitting its manufacturing overhead cost of $700,000 across three activities: Setup, Production, and Finishing. Under the traditional volume-based costing system, the predetermined overhead rate is $7.00/direct labor hour. Under the ABC system, the rate for each activity and usage of the activity drivers are as follows: Setup (Batches) Production (Direct Labor Hours) Finishing (Machine Hours) Activity Usage by Rate Product $ 100/hour 270 $3.00 46,000 $ 980 44 Usage by Product B 2 30 54,000 320 Required: a. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system. Indirect Manufacturing Costs b. Calculate the indirect manufacturing costs assigned to Product B under the traditional costing system. Indirect Manufacturing Costs c. Calculate the indirect manufacturing costs assigned to Product A under the ABC system. Indirect Manufacturing Costs