1:06 Cain Components manufactures and distributes various plumbing products used in homes and other buildings. Over time, the productlon staff has noticed that products they considered easy to make were difficult to sell at margins considered reasonable, while products that seemed to take a lot of staf ume were selling well desp price increases. A summer intern has suggested that the cost system might be providing misleading information The controller decided that a good summer project for the intern would be to develop, in one self- contained area of the plant, an alternative cost system with which to compare the current system. The intern identified the following cost pools and, after discussion with some plant personnel, appropriate cost drivers for each pool. There were: Drect Crivers Machine hours Cost Pools Manufacturing etup Shipging Csts 5.250.000 ups nits shirged s 1575000 n this particular area, Cain produces two of its many products: Standard and Deluxe. The following are data for production for the latest full year of operations: Products Standard Deluxe sts Tl dirnet lahor costs Total machinehours 40,000 10,000 Ttal nounds afmatenal 7500 15000 o ts produced and shipped 75 000 Required: a. The current cost accounting system charges overhead to products based on machine-hours.What unit product costs will be reported for the two products if the current cost system continues to be used? (Do not round intermediate calculations.) Standard Deluxe Direct costs Overhead Total costs Number of Unit cost b. The intern suggests an ABC system using the cost drivers identified above. What unit product costs will be reported for the two products if the ABC system is used? (Do not round intermediate calculations.) Standard Deluxe Direct Costs Overhead Receiving Manufacturing Machine setup Shipping Total costs Number of units Unit cost