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Harwell, Incorporated, produces two products. Product A and Product B. Harwell uses a traditional volume-based costing system in which direct labor hours are the allocation
Harwell, Incorporated, produces two 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 spitting its manufacturing overhead cost of $775.000 across three activities: Setup. Production, and Finishing. Under the traditional volume-based costing system, the predetermined overhead rate is $775 per direct labor hour. Under the ABC system, the rate for each activity and usage of the cost ditvers are as follows: Requlred: a. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system. b. Calculate the indirect manufacturing costs assigned to Product B under the traditional costing system. c. Calculate the Indirect manufacturing costs assigned to Product A under the ABC system. d. Calculate the indirect manufacturing costs assigned to Product B under the ABC system. e. Which product 15 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. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system. Harwell, Incorporated, produces two 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 spitting its manufacturing overhead cost of $775.000 across three activities: Setup. Production, and Finishing. Under the traditional volume-based costing fystem, the predetermined overhead rate is $775 per direct labor hour. Under the ABC system, the rate for each activity and usage 0 he cost drivers are as follows: Required: a. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system. b. Calculate the indirect manufacturing costs assigned to Product B under the traditional costing system. c. Calculate the indirect manufacturing costs assigned to Product A under the ABC system. d. Calculate the indirect manufacturing costs assigned to Product B under the ABC system. e. 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. Calculate the indirect manufacturing costs assigned to Product B under the traditional costing 5ystem. Complete this question by entering your answers in the tabs below. Calculate the indirect manufacturing costs assigned to Product A under the ABC system. Complete this question by entering your answers in the tabs below. Calculate the indirect manufacturing costs assigned to Product B under the ABC system. Required: 0. Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system. b. Caiculate the indirect manufacturing costs assigned to Product B under the traditional costing system. c. Calculate the indirect manufacturing costs assigned to Product A under the ABC system. d. Calculate the indirect manufacturing costs assigned to Product B under the ABC system. e. 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. Which product is undercosted and which is overcosted under the volume-based cost system compared to ABC
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