ControlCarter, Incorporated, uses a traditional volume$-$based costing system in which direct labor hours are the allocation base. Carter produces two products: Product A$,$ which uses $180,000$ direct labor hours, and Product B$,$ which uses $220,000$ direct labor hours. Carter is considering switching to an ABC system by splitting its manufacturing overhead cost of $$908,000$ across three activities: Design, Production, and Inspection. Under the traditional volume$-$based costing system, the predetermined overhead rate is $$2\mathrm{.}27$ per direct labor hour. Under the ABC system, the cost of each activity and proportion of the cost drivers used by each product are as follows:

Activity Pool $($Driver$)$ Cost of Pool Proportion used by Product A Proportion used by Product B

Design $($engineering hours$)$ $ $200,00025\%75\%$

Production $($direct labor hours$)500,0004555$

Inspection $($batches$)208,0007525$

Required:

Calculate the indirect manufacturing costs assigned to Product A under the traditional costing system.

Calculate the indirect manufacturing costs assigned to Product B under the traditional costing system.

Calculate the indirect manufacturing costs assigned to Product A under the ABC system.

Calculate the indirect manufacturing costs assigned to Product B under the ABC system.

Which product is undercosted and which is overcosted under the volume$-$based cost system compared to ABC?