Hayden, Inc. produces two different products, Product A and Product B$.$ Hayden uses a traditional volume$-$based costing system in

which direct labor hours are the allocation base. Hayden is considering switching to an ABC system by splitting its manufacturing

overhead cost across three activities: Engineering, Manufacturing, and Inspection. The cost of each activity and usage of the activity

drivers are as follows:

Hayden manufactures $13,950$ units of Product A and $6,975$ 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

b$.$ Calculate the activity rate for Engineering. $($Round your answer to $2$ decimal places.$)$

Activity Rate

per hour

c$.$ Calculate the activity rate for Manufacturing. $($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. $($Do not round intermediate calculations. 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. $($Do not round intermediate calculations. 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?