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PLEASE HELP WITH A-I ASAP THANK YOU!!!! Carter, Inc. produces two different products, Product A and Product B. Carter uses a traditional volume-based costing system

PLEASE HELP WITH A-I ASAP THANK YOU!!!!

Carter, Inc. produces two different 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 activity drivers are as follows:

Cost Usage by Product A Usage by Product B
Design (Engineering Hours) $ 409,200 260 360
Production (Direct Labor Hours) $ 453,200 106,000 306,000
Inspection (Batches) $ 291,200 360 160

Carter manufactures 10,600 units of Product A and 8,100 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.)

b. Calculate the activity rate for Design.

c.

Calculate the activity rate for Machining. (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. (Round your intermediate calculations to two decimal places. 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. (Round your intermediate calculations to two decimal places. 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?

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