Yarn Company produces two different yarn products, Cotton Yarn (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 $1,156,000 across three activities: Design, Production, and Inspection. Under the traditional volume-based costing system, the predetermined overhead rate is $2.89/direct labor hour. Under the ABC system, the rate for each activity and usage of the activity drivers are as follows: Design (Engineering hours) Production (Direct Labor Hours) Activity Rate 5420/hour $1.75 Usage by Cotton Yarn (Product A) Usage by Wool Yarn (Product B) 200 300 Inspection (Batches) $600 100,000 310 300,000 100 Required: 6. Calculate the indirect manufacturing costs assigned to Cotton Yarn under the traditional costing system indrect Manufacturing Costs b. Calculate the Indirect manufacturing costs assigned to Wool Yarn under the traditional costing system Indirect Manufacturing Costs