Odom, Inc. produces two different products, Product A and Product B. Odom uses a traditional volume-based costing system in which direct labor hours are the allocation base. Odom is considering switching to an ABC system by splitting its manufacturing overhead cost of $675,000 across three activities: Setup, Production, and Finishing. Under the traditional volume-based costing system, the predetermined overhead rate is $6.75/direct labor hour. Under the ABC system, the rate for each activity and usage of the activity drivers are as follows: Activity Usage by Usage by Rate Product A Product B $ 100/hour 260 $3.00 45,500 54,500 $ 940 42 300 Setup (Batches) Production (Direct Labor Hours) Finishing (Machine Hours) 240 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 d. Calculate the indirect manufacturing costs assigned to Product B under the ABC system. Indirect Manufacturing Costs e. Which product is under-costed and which is over-costed under the volume-based cost system compared to ABC? Product A Product B