Tara is thinking of implementing an ABC Method using the following Cost Pools and Cost Drivers:

Cost Pools Amount Cost Drivers Amount

Machine Set$-$Up $$550,000$ # set$-$ups $25,000$

Quality Inspect $$350,000$ # inspect $100,000$

Purchase Orders $$150,000$ # of PO $50,000$

Machine Costs $$450,000$ # hours $10,000$

Product A had the following data:

# of machine set$-$ups $15,000$

# inspections $60,000$

Purchase Orders $40,000$

Machine Hours $7,000$

Product B had the following data:

# of Machine Set$-$ups $10,000$

# Inspections $40,000$

# Purchase Orders $10,000$

# Machine Hours $3,000$

b$.$ What would be the amount of Manufacturing Overhead charged to Product A and Product B if Tara implements Activity Based Costing $($ABC$)?$

c$.$ How much would Product A be Over or undercharged for Manufacturing Overhead if Tara implements the ABC method instead of using the Plantwide Rate?

d$.$ How much would Product B be under or overcharged for Manufacturing Overhead if Tara implements the ABC method instead of using a plantwide rate?