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3) Carter, Ine, produces two ditfereat products, Product A and Product B. Carte uses a traditional volue-based costing system in which direet labor hours are the allocation base. Carter is considering switching to an ABC systen by splitting its manufacturing overhead cost across three activities: Design, Production, and Inspection. The cost of each activity and usage of the activity drivers are as follows: Cost Usage by Product A Usage by Product B Design Engineering Hours) 300,000 200 300 Production Direct Labor Hours) $500,000 100,000 300,000 Inspection Batches) $200,000 300 100 Carter manufactures 10,000 units of Product A and 7,500 units of Product B per month. Required aCalculate the predetermined overhead rate under the traditional costing system. b. Calculate the activity rate for Design. c. Calculate the activity rate for Machining. d. Calculate the activity rate for Inspection e. Calculate the applied factory overhead to each unit of Product A under the traditional costing system f. Calculate the applied factory overhead to each unit of Product B under the traditional costirn system g. Calculate the applied factory overhead to each unit of Product A under the ABC system h. Calculate the applied factory overhead to each unit of Product B under the ABC system. 300

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