The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs:

Activity Cost Driver

Activity 1 Direct materials Cost

Activity 2 Direct Labor Cost

Activity 3 Kilowatt Hours

Three types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:

Product A Product B Product C

Direct material cost $75,000 $50,000 $125,000

Direct Labor Cost $6,600 $1,000 $3,000

Direct Labor hours $2,000 $1,000 $2,000

Kilowatt hours $150,000 $200,000 $150,000

Indirect productioncosts for the month are as follows:

Activity 1 $30,000

Activity 2 $20,000

Activity 3 $16,000

Total $66,000

A.) Compute the indirect production costs allocated to each product using the ABC system?

B.) Compute the indirect production costs allocated to each product using a traditional costing system. Assume indirect production costs are allocated to each product using the cost driver: direct labor hours?