Yarn Company produces two different Yarn products, Cotton Yam (Product A) and Wool Yarn (Product B), Yarn Company uses a traditional volume-based costing system in which direct labor hours are the allocation base. Yarn Company is considering switching to an ABC system by splitting its manufacturing overhead cost of $2,900,000 across three activities: Engineering, Manufacturing, and Inspection Under the traditional volume-based costing system, the predetermined overhead rate is $5.25/direct labor hour. Under the ABC system, the rate for each activity and usage of the activity drivers are as follows: Usage by Usage by Wool Activity Cotton Yarn Yarn (Product Rate (Product A) 8) Engineering (Engineering Hours) $ 320/hour 3,300 14,500 Manufacturing (Direct Labor Hours) $1.00 1,ese,000 1,050,000 Inspection (Batches) $ 560 6,200 Required: a Calculate the indirect manufacturing costs assigned to Cotton Yarn under the traditional costing system Indirect Manufacturing Conta b. Calculate the indirect manufacturing costs assigned to Wool Yarn under the traditional costing system Indirect Manufacturing Costs c. Calculate the Indirect manufacturing costs assigned to Cotton Yarn under the ABC system Indirect Manufacturing Costs d. Calculate the indirect manufacturing costs assigned to Wool Yarn 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