Question #$6-$ LO: $04-01$ Assign indirect costs to products or services using a single volumebased cost driver.; $04-06$ Compare the results of a volume$-$based cost system to activity$-$based costing.; $04-04$ Assign indirect costs to products or services using activity rates.

Hayden, Inc. produces two different products, Product A and Product B$.$ Hayden uses a traditional volume$-$based costing system in which direct labor hours are the allocation base. Hayden is considering switching to an ABC system by splitting its manufacturing overhead cost of $$1,600,000$ across three activities: Engineering, Manufacturing, and Inspection. Under the traditional volume$-$based costing system, the predetermined overhead rate is $$\frac{2\mathrm{.}00}{?}$ direct labor hour. Under the ABC system, the rate for each activity and usage of the activity drivers are as follows:

$\backslash$table$[[,$Activity Rate,$\backslash$table$[[$Usage by$],[$Product A$]],\backslash$table$[[$Usage by$],[$Product B$]]],[\backslash$table$[[$Engineering $($Engineering$],[$Hours$)]],$$$,\frac{60}{?}$ hour,$2,000,8,000],[\backslash$table$[[$Manufacturing $($Direct Labor$],[$Hours$)],[$Inspection $($Batches$)]],$$$1\mathrm{.}00,400,000,400,000],[,$$$,40,4,000,1,000]]$

Required:

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

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

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

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

e$.$ Which product is under$-$costed and which is over$-$costed under the volume$-$based cost system compared to ABC $?$